Chapter 13 Bankruptcy Myths vs. Reality
Unfortunately, some folks never get to take advantage of the many benefits of Chapter 13 because they are scared away by various myths associated with bankruptcy. They mistakenly believe filing will ruin their credit, cause them embarrassment and/or strip them of all their worldly possessions. Because of these misguided fears, they avoid seeking help until they run out of options — and lose a home. But it doesn't have to be that way.
Bankruptcy isn’t the end of the line. It’s a brand new beginning!
When you file for bankruptcy, a judge can grant you lower payments on non-mortgage debts, freeing up more money for your house payments and other necessities.
Want to know more? A DebtStoppers attorney can review your individual financial situation and address any of your concerns about bankruptcy. And it won't cost you a dime.
Read on to discover the truth behind the most persistent bankruptcy myths.
Myth #1: Bankruptcy will ruin my credit
Not true. At DebtStoppers, many of our clients have gotten loans immediately after filing. Besides, think of it this way. What's the current state of your credit? If you're drowning in debt and behind on your mortgage, your FICO probably isn't in the best shape anyway. Even if you're making the minimum payments, you're still in debt — and that's reflected on your credit score.
Do you want to know the truth? Yes, creditors will know you filed for bankruptcy — and it will remain on your record for several years. But they'll also see you've been working hard to get out of debt. And that reduces your risk factor and helps your score.
Look at it this way. You can stay in debt and continue to damage your credit for years. Or you can wipe the slate clean and start fresh. Bankruptcy is a way to do it.
Once you complete your repayment plan, you'll be in the clear. And that will go a long way towards repairing your credit score.
Myth #2: I'll have to give up all my stuff
Not with Chapter 13. Unlike other types of bankruptcy, Chapter 13 allows you to propose a realistic repayment plan so you can keep your assets while you eliminate debt for good. In fact, your stuff is legally protected during the process by the automatic stay.
It's true that Chapter 7 bankruptcy can sometimes involve liquidating certain assets in exchange for the discharge of your debts. But even with a liquidation bankruptcy, there are many exemptions and exceptions. If you're worried about losing your belongings or have any other questions about bankruptcy, a bankruptcy attorney can get you the answers you need at no cost when you fill out our free personal debt analysis or call us at 312-913-0630.
Myth #3: Bankruptcy is embarrassing
There's a misguided perception that filing for bankruptcy is something shameful. But there's nothing wrong with taking responsibility for your finances — and bankruptcy is a logical way to do just that. Millions of people across the country — rich, poor, middle class — are in danger of losing their homes to foreclosure. You're not alone in this. And you don't have to go through the process alone, either.
If you avoid dealing with your finances because you're ashamed, what's going to happen? You could lose your home, your life savings, your credit and your dignity. Filing for bankruptcy can help you keep these things and finally gain financial independence. Now, what option sounds most appealing to you?
Get real, reliable information on Chapter 13 bankruptcy: call DebtStoppers today!
Find out about the power of bankruptcy yourself when you get in touch with a DebtStoppers attorney, either online or via phone at 312-913-0630.