7 Common Myths about Bankruptcy

Myths and misconceptions often prevent people from making good decisions about the debt they are faced with. The attorneys at Pratt & Maegli Law Firm will take the time to help you fully understand your legal options.

Myth #1: My Credit will be ruined after bankruptcy.

Fact: False. After your bankruptcy, you have a new start. If you pay all of your bills on time and do not fall behind on any payments, you will see your credit score improve, despite the fact that you filed for bankruptcy. There will most likely be opportunities to re-establish credit immediately after filing for bankruptcy. Filing for bankruptcy gives people with overwhelming debt the opportunity to rebuild their credit. After bankruptcy you are like a clean slate to the credit company. For our clients, it usually takes less than a year or so after bankruptcy to acquire new credit.

Myth #2: I will lose my car, house and other possessions.

Fact: False. Bankruptcy is protection, not punishment. It helps people who struggle with too much debt. Bankruptcy was not designed to punish people by taking away their homes or cars. Almost all of our clients do not lose any property at all in bankruptcy.

Myth #3: My spouse will be liable for my debt.

Fact: This may not be the case. Spousal liability needs to be determined and may not apply in your specific situation. Consult with an attorney from Pratt & Maegli Law Firm and we will advise you based upon your unique situation.

Myth #4: I will never be able to buy a home or car after filing for bankruptcy.

Fact: False.. Most of our clients have been able to purchase a house or car soon after filing for bankruptcy.

Myth #5: Bankruptcy means that I am a bad person.

Fact: Absolutely false. Thousands and thousands of responsible, good and decent people file bankruptcy every year. It is more honorable to take responsibility for your financial future through bankruptcy than to try to ignore or avoid your creditors and continue to put yourself and your family through harassment by creditors.

Myth #6: If I don’t pay my debts I can go to jail.

Fact: False. There is no such thing as debtor’s prison in America. You will not be arrested and jailed for failing to pay your debt, even if you get sued or a judgment is obtained against you.

Myth #7: A non-lawyer debt company or debt counselor can help me avoid bankruptcy by eliminating my debts.

Fact: False. Debt counselors cannot prevent your creditors from abusing you through harassing phone calls and letters. They cannot help you legally eliminate your debt. Bankruptcy is the only way to eliminate your debt and absolutely stop creditor abuse once and for all. Most people find that debt counseling companies are concerned only with taking your money, not solving your problems.

Contact Pratt & Maegli Law Firm today for your free evaluation. If you are considering bankruptcy in the Crystal Lake, Woodstock or McHenry area, we can help. We care about making sure you fully understand your options. We walk with you through the process; we take it personally.

Email or call at (815) 315-0683

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Rockford, IL 61108

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The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. Disclaimer: The Pratt & Maegli Law Firm, P.C. is a Debt Relief law firm as defined by 11 U.S.C. 528. We help people file for Bankruptcy Relief under the Bankruptcy Code. We do not guarantee any result and prior results do not guarantee a similar outcome. This is an attorney advertisement and this website is for informational purposes only.