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Chapter 7 Bankruptcy & Chapter 13 Bankruptcy Misconceptions

Dispelling Chapter 7 Bankruptcy and Chapter 13 Bankruptcy Misconceptions

For those facing serious debt or debt they simply cannot pay due to unforeseen circumstances, bankruptcy is a viable solution. Once your bankruptcy is finalized, you can proceed in rebuilding your credit and once again have peace of mind regarding your finances. If you are considering filing for Chapter 7 bankruptcy or Chapter 13, be sure to contact a reputable attorney to guide you through the process.

Top Misconceptions Surrounding Chapter 7 & 13 Bankruptcy

  • If you file for bankruptcy, you will lose everything your own. This statement is completely untrue. There are legal protections called exemptions put in place by state legislature to protect those undergoing a bankruptcy. These can include household goods, pension plans, 401k or other benefit plans, and in some cases you vehicle or home.
  • Bankruptcy destroys your credit. This statement is false. Bankruptcy does affect your credit, but once the bankruptcy is finalized, you can begin to rebuild your credit. Most individuals end up with a very impressive credit score after their credit has had time to recover.
  • If I file for bankruptcy it will ruin my spouse's credit. No, your spouse's credit will not be affected by your bankruptcy. A spouse's credit can only be affected if they file bankruptcy with you.
  • People will know I filed for bankruptcy. The only individuals who are notified of your bankruptcy are your creditors, no one else. Friends, family, or employers cannot access court records regarding your bankruptcy.
  • Bankruptcy can't help me. Bankruptcy is a second chance; it is designed to help those who are struggling to get back on their feet financially. Speak with your attorney to decide which type of bankruptcy will be right for your situation.

For more information regarding bankruptcy, please contact the attorneys with the Law Office of James C. Shields. Our courteous and knowledgeable staff is here to help, please contact us for a consultation.