Chicago Bankruptcy Attorney · We Clear Up Bankruptcy Myths
We have all heard the worst stories about bankruptcy. Credit card companies want you to believe that people filing for bankruptcy are dishonorable thieves. The truth is, the U.S. Congress established bankruptcy laws more than 200 years ago because they realized that America is all about giving people a second chance. Along the way, though, there have been many myths that have developed.
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At the Law Offices of Chad M. Hayward, P.C., we receive many calls with questions about the Chapter 7 and Chapter 13 bankruptcy process and various myths about bankruptcy. We would like to take this opportunity to address some of those myths.
Myth: Bankruptcy will destroy your credit rating forever.
Truth: Yes, of course bankruptcy will have an impact on your credit rating for several years. But it will not be the death of your credit. When we meet for your initial free consultation, we will discuss some things you can do to start recovering your credit worthiness immediately. Most people start to get credit within a year or two after filing bankruptcy. In most cases, a Chapter 7 bankruptcy will remain on your credit report for 10 years, as you continue to build up your credit score.
Myth: You will lose your house and car if you file.
Truth: If you are facing foreclosure, bankruptcy is one of the best options to stop the foreclosure proceeding in its tracks. Under rules of Chapter 7 and Chapter 13, most people have the option of keeping their house and vehicle if they choose. The specifics are different for each individual and family.
Myth: Your boss will be notified of your credit problems.
Truth: Bankruptcy is a legal proceeding in the public courts. Your case will be a matter of public record but there are legal steps you can take to prevent your boss from being notified. In most cases, employers do not keep tabs on their employees' credit reports.
Myth: Prospective employers will check your credit record before hiring you.
Truth: There are some industries and executive positions that require a credit check. Very few employers take this step as part of the hiring process. Over the past few years, millions of very good, hardworking people have filed bankruptcy. Employers know that a damaged credit report doesn't reflect on the employee's job skills or attitude.
Myth: You can eliminate all debt under Chapter 7 bankruptcy?
Truth: Certain types of debt cannot be eliminated. Government-backed debt, such as student loans cannot be eliminated but can be reduced as part of a repayment plan under Chapter 13. Tax debt can be eliminated under certain circumstances.
Myth: Bankruptcy is expensive.
Truth: Our law firm does everything possible to keep your costs down. We even offer payment plans for many clients. Our retainer fee is one of the lowest you will find in Chicago and Illinois. We do not want cost to be a detriment to filing.
We are happy to answer all of your questions about bankruptcy. We offer a free initial consultation and you will be under no pressure to hire us. If you retain us, we offer efficient services at a reasonable cost.
The right bankruptcy lawyer will make a difference in how efficiently your case is handled. Reach us to schedule an appointment at any one of our local community offices by calling 312-546-4689 or toll free 888-804-8641.
Chicago
Aurora
Joliet
Schaumburg
Palos Heights
Northbrook
Oakbrook
St. Charles
You can also contact us by e-mail with a brief description of your legal problem.
We look forward to helping your resolve your legal problem efficiently and cost-effectively.
