It’s a difficult process and probably the last resort for you and your family. While we understand just how hard this time can be, we also realize there are a lot of myths and misconceptions surrounding bankruptcy. Part of our job is to dispel the fallacies and to create a game plan built around the truth. Our strategy is to cultivate what works best for you and your future. At the Law Offices of John Schmidt & Associates, we will see to it that you’re completely informed of your options.

5 Bankruptcy Myths (& Why They’re Not True)

1. Everyone will know I filed for bankruptcy and it will ruin my life.

This myth couldn’t be farther from the truth. With the exception of being a public figure or managing a major corporation, it’s highly unlikely that anyone besides your Shepherdsville bankruptcy lawyers and your creditors will be aware of your bankruptcy filing.

2. Chapter 7 bankruptcy will clear up all of my debt.

While this may sound great, the truth is that filing chapter 7 definitely will not clear up all of your debt. There are certain types of debts that, by law, are ineligible for bankruptcy relief. Some of these debts are:

  • Child support

  • Student loans

  • Spousal support

  • Restitution

3. If I file bankruptcy, my credit will be ruined forever.

This myth isn’t necessarily true. In fact, it’s only true if you aren’t responsible with your finances. It’s not uncommon for people to restore their credit to even higher scores than before filing once the bankruptcy process is complete. We’ll aid you in coming up with a solid financial plan to secure your future and help you rebuild your credit. You have to be patient and diligent, but it can work.

4. I can file for bankruptcy over and over again.

The limitations on how often someone can file for bankruptcy are very strict. After a debtor files Chapter 7, for example, he or she cannot file another one for at least eight years. Laws like this are meant to prevent people from taking advantage of the bankruptcy system.

5. People who file bankruptcy are obviously financially irresponsible.

This is a sad judgment that a lot of people make. Sometimes, it’s not even about a preconceived notion people have about others — but a judgment they’ve placed on themselves. Mistakes happen and it’s easy to get weighed down by debt. Most of the time, bankruptcy is a route for those who have experienced unforeseen circumstances brought on by medical bills, losing a job, or going through a divorce. Don’t be so hard on others or yourself.

We can help you through bankruptcy

At the Law Offices of John Schmidt & Associates, we’re eager to meet you and start working on your case. Feel free to come to us with whatever your legal needs are. In turn, we promise to be helpful, caring, and do our best to guide you toward positive results.