subject: Filing For Bankruptcy? Clear Your Misconceptions First [print this page] In Chicago many people go through the same financial crisis suffered by people in the other parts of the world. They choose bankruptcy as their last option to get rid of the financial woos. Filing for bankruptcy is not a wise decision but there is nothing to get panicky about it. Many people are absolutely afraid of filing for bankruptcy. But when they have no other options they get upset.
There are certain misconceptions about filing for bankruptcy. Lets have a look at the common misconceptions so that you can get rid of unnecessary tension.
Losing All of Your Property
Many people think that they will loose all their property if they file for bankruptcy. This is probably the biggest misconception people have. Even if you file for bankruptcy you can safeguard a certain amount of your overall property. At the same time you can eliminate your debt fully or partially. There are some differences in bankruptcy laws in various states of US. But the bankruptcy law in each and every state allows the person filing for bankruptcy to shield some value in property and Chicago bankruptcy law is no different. In fact in Chapter 7 bankruptcy people usually keep their entire property. If they pay the debt on time they can keep their homes as well as cars.
Social Stigma
It is often said that social stigma is attached to bankruptcy. People filing for bankruptcy get worried that everyone will know about his or her financial crisis. They feel that filing for bankruptcy is something to be ashamed of. But there is little chance that anybody will no about it unless you are a celebrity. Ask your bankruptcy attorney not to disclose your case to anyone and no one will know about your case. If you wish your current employer to be ignorant of the fact that you have filed for bankruptcy you can do so.
Not Getting Further Credit
Many people think that if they file for bankruptcy they will never get credit in future. It is true that it can be a little difficult to get credit again but it is not impossible. In fact many lenders target people who have recently filed for bankruptcy because the lenders can ask for high interest rate. But the opportunity to get loan will exist. Moreover if you wish to get credit two years after you have filed for bankruptcy you can expect normal interest rate.
Elimination of Debt
Though people think that filing for bankruptcy will eliminate all their debts, this is not true. The type of debt you have will determine whether all your debts will be eliminated or not. Some of the cases where debts are usually not eliminated include child support, student loans, parking tickets, recent taxes, maintenance, debt acquired by fraud etc. Consult an experienced Chicago bankruptcy attorney to understand whether debt can be eliminated in your case.
Handling all the intricacies related to bankruptcy is difficult for a lay man. Hiring a bankruptcy attorney ensures that the process gets completed smoothly.
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