Myths About Bankruptcy
Deciphering Between Fact & Fiction
Even with the number of individuals who are facing overwhelming debt, many myths are still being circulated about the process of bankruptcy. At Joseph P. Doyle, we insist on helping our clients know the truth about filing for bankruptcy, from its advantages to its disadvantages. We also want you to have a realistic expectation of what to expect after bankruptcy.
We have also included some common bankruptcy myths to help clarify the subject. If you have any further questions, however, we ask that you call our Chicago bankruptcy attorney directly.
Myth #1: My credit will suffer for 10 years after filing for bankruptcy.
Although an individual's credit score may inevitably take a hit after he or she files for bankruptcy, it does not remain so indefinitely. Most commonly, a person's credit may suffer for one to two years after completing the bankruptcy process, but by taking positive steps toward rebuilding your credit score, you might be able to obtain a loan and make larger purchases sooner than most would think.
Myth #2: I will not meet the minimum amount of debt requirement.
In Illinois, bankruptcy law does not require a minimum amount of debt to file. Although it is not advisable to initiate such a process without a reasonable amount of building debt, if you can show that your ability to manage your debt successfully is severely diminished, you may not have a problem filing. To qualify for Chapter 7 bankruptcy, however, one must undergo a means test.
Myth #3: Filing for bankruptcy means that I am financially irresponsible.
Many people shy away from the idea of filing for bankruptcy because they believe that it can make them appear financially irresponsible. It is important to understand that this is simply untrue. Countless individuals have been forced to suffer through the consequences of an economic recession, but it does not mean that it is something to be ashamed of. In fact, you may be surprised to find out just how many people have filed for bankruptcy in recent years.
Speak to a Chicago bankruptcy lawyer!
Although there are both advantages and disadvantages to filing for bankruptcy, without knowing all of the facts, it would be hard for anyone to make an informed decision. If you are struggling under a mountain of debt and are exploring your options for debt relief, you should not hesitate to speak to a knowledgeable attorney before ruling out bankruptcy as a viable option.
By scheduling a free initial consultation at our firm, you may be able to gain a better understanding of what is fact and what is fiction when it comes to filing for bankruptcy.
Start by making the decision to contact a Chicago bankruptcy attorney today! We are here to help you through these times.