A Knowledgeable Bullitt County and Louisville Area Bankruptcy Attorney Dispels Common Bankruptcy Myths

Get the facts about these financial fallacies

Common Bankruptcy MythsUnfortunately, there are many bankruptcy myths that keep people from getting the financial help they need from the law. The process for declaring bankruptcy is complex, and it’s made even more difficult by many of the myths that are out there surrounding the issue.

My name is John Schmidt, and at the Law Offices of John Schmidt & Associates PLLC, we want you to be completely informed of your options. Our team recently compiled these top five bankruptcy myths, as well as why they are not always true.

  1. Everybody will know I filed for bankruptcy, and it will ruin my life. This is simply not true. Unless you manage a major corporation or are a public figure, the chances are slim that anyone other than your Shepherdsville bankruptcy lawyers and your creditors will find out that you filed for bankruptcy.

  2. Chapter 7 bankruptcy clears all of my debts. Unfortunately, this is not the case. Certain types of debts such as child support, spousal support, restitution, debts incurred through fraud and student loans are ineligible for relief through bankruptcy. However, most debts can be discharged.  Chapter 13 bankruptcy is known as a “wage earners” bankruptcy and allows you to protect your home, car(s) and other assets, even if your home is near or in foreclosure.

  3. My credit rating will be ruined forever. This common bankruptcy myth is only true if you are unwise with your finances. Many people restore their credit to very respectable levels after filing for bankruptcy. We help you create a financial plan that gives you a secure financial future and the means to rebuild your credit. It isn’t quick or easy, but it works — you just need patience.

  4. I can file for bankruptcy as often as I want. There are strict limitations on how often a person can file for bankruptcy. For example, debtors who file for Chapter 7 bankruptcy cannot file again for a minimum of eight years. These laws prevent people from taking advantage of the bankruptcy system.

  5. Anyone who files for bankruptcy is financially irresponsible. Unfortunately, it is easier than many people think to become weighed down by debt. Many people who file for bankruptcy do so because of major unforeseen medical expenses, a sudden loss of employment or a divorce.

Don’t simply accept these and other common bankruptcy myths as fact — get the truth from qualified bankruptcy attorneys who care about helping people.

We invite you to contact us via e-mail, schedule an appointment or call us today at (502) 509-1490 to get the answers you need and relief from financial challenges and creditors.