Dispelling Bankruptcy Myths

Since bankruptcy has been in the news so frequently, more and more myths have started to arise regarding those who file for it. If you are considering bankruptcy then you need to understand which facts to believe and which to discard.

You might be worried that everyone will learn that you have filed for bankruptcy. Unless you are in the public eye, the only people who will be aware that you have filed are your creditors. You may have heard about Chapter 7 bankruptcy being the ideal type to file for since you can erase all of your debts. This is not entirely true. There are only certain types of debts that can be discharged under this category of bankruptcy. 

Even if you qualify for Chapter 7 bankruptcy you are still responsible for paying off government-guaranteed student loans, alimony, child support, and debts incurred as a result of fraud. Any legal settlements in which you owe money are also very unlikely to be discharged by a bankruptcy judge.

Have questions about bankruptcy?  Contact our legal team to get answers and advice from a Chicago bankruptcy attorney.