Top Bankruptcy Myths

If you are considering bankruptcy then there are three popular myths that you should dispel beforehand.

First is the myth that you cannot file for bankruptcy if you have a job. While there is a new "means test" meant to funnel out the people whose income is over that of the median income for households of their size, it is possible to file for bankruptcy while still working. In fact, you must have a job if you plan on filing for Chapter 13 bankruptcy.

Secondly, you might have heard that medical bills cannot be discharged by bankruptcy. This is the type of rumor that bill collectors like to spread but is not entirely true. It is possible to have some or all of your unsecured debts released by bankruptcy. This can include medical bills, credit cards and personal loans.

Finally, once you file for bankruptcy you will be unable to secure a loan for ten years. False! While filing for Chapter 13 bankruptcy will affect your credit score it does not mean the end of the world. In fact, those who file for Chapter 7 bankruptcy are often inundated with offers for credit cards. However, be forewarned that they will come at higher interest rates.

Have questions about consumer bankruptcy?  Get accurate answers by contacting our firm and speaking with a Chicago bankruptcy lawyer.