Common Bankruptcy Myths

Bankruptcy Lawyer in Dupage County

There are many common misconceptions about bankruptcy. This misinformation can get in the way of evaluating your options in a difficult financial situation. At the Law Office of Joseph P. Doyle, we specialize in helping clients through the bankruptcy process. We have listed here some common myths, along with the corresponding actual facts, to help you make a well-informed decision.

Myth: I will lose everything I own if I file for bankruptcy.

FACT: Some assets are protected under bankruptcy law, for both Chapter 7 and Chapter 13. You may be able to keep your house, your car, and certain other assets and income, depending on your particular situation.

Myth: Bankruptcy will eliminate all my debts.

FACT: Many debts can be eliminated, but there are exceptions. Bankruptcy discharges unsecured debts, such as credit cards, personal loans, or utility bills. Child support, alimony, student loans, certain taxes, and government fines may not be dischargeable.

Myth: My credit will be destroyed for at least 10 years after I file bankruptcy.

FACT: Bankruptcy will affect your credit score, but not indefinitely. Many people are able to restore their credit in only a few years by taking positive steps to rebuild it. Our knowledgeable Dupage County bankruptcy lawyers can help you develop a successful financial strategy for your life after bankruptcy.

Myth: If I am married, my spouse will have to file with me.

FACT: There is no requirement that married couples file together. If you are married, you can file individually or jointly with your spouse.

Myth: Only financially irresponsible losers file for bankruptcy.

FACT: In today's economy, many honest, hard-working people elect to file bankruptcy as a last resort. Events such as loss of a job, divorce, or illness can lead to unexpected financial hardship. In many cases, filing bankruptcy is the most financially responsible action a person can take.

Contact us for personal assistance and to answer any questions you have about your personal financial situation and bankruptcy.