Getting Relief: Answers to Your Top Five Bankruptcy Concerns

Are you considering personal bankruptcy? If so, you might have discussed your circumstances with close friends or family members, and you might have done some of your own research into the different types of consumer bankruptcy that are available. Yet, many people in the Chicago area who are struggling with debt encounter a lot of misinformation or incomplete information before they have spoken with an attorney. We know that filing for bankruptcy is a big decision, and we want to ensure you have the information and the answers you need. Here are answers to five top bankruptcy concerns our Oak Park bankruptcy lawyers often hear.

1. Bankruptcy Concern: I Will Lose All of My Property

Many debtors reach out to bankruptcy lawyers with the initial concern that filing for bankruptcy will result in them losing all of their property or being required to turn over all of their property to the bankruptcy trustee. This is simply not how any type of consumer bankruptcy works. Under the Bankruptcy Code, Chapter 13 bankruptcy does not involve the liquidation of any assets. Even when you do file for Chapter 7 bankruptcy (a type of liquidation bankruptcy), you can be eligible to keep a wide range of your property through Illinois’s statutory exemptions.

2. Bankruptcy Concern: My Employer and Co-Workers Will All Think I Cannot Handle My Finances

You are not required to tell your employer or co-workers about your bankruptcy case. While it is public information, there is no guarantee that anyone will necessarily even find out.

3. Bankruptcy Concern: I Will Never Be Able to Get a Loan Again if I File for Bankruptcy

This is a common bankruptcy myth. While your credit will be impacted by a bankruptcy filing, you can immediately begin working to rebuild your credit and can absolutely be eligible for a loan again in the future.

4. Bankruptcy Concern: My Business Partners Will Be Impacted by My Personal Bankruptcy Filing

Aside from a bankruptcy case in which the individual filer is the owner of a sole proprietorship, businesses are not typically impacted by personal bankruptcies. Accordingly, your business partners and your business are not likely to be affected by your decision to file.

5. Bankruptcy Concern: I Will Never Qualify for a Mortgage Again

In fact, many people who file for bankruptcy can qualify for certain types of mortgages in only a couple of years, and others typically only must wait a little while longer. The waiting period for a mortgage depends upon the type of bankruptcy case and the type of mortgage you are seeking. As we noted above, it is certainly possible to begin rebuilding your credit immediately following a bankruptcy filing or a discharge, and you may soon qualify again for a mortgage so that you can buy a home.

Contact Our Oak Park Bankruptcy Attorneys

If you have any concerns at all about the consumer bankruptcy process, whether you are considering Chapter 7 or Chapter 13 bankruptcy, you should get in touch with an experienced Oak Park bankruptcy lawyer who can answer your questions and allay your fears. Contact the Emerson Law Firm today for more information.



See Related Blog Posts:

Can Chapter 13 Bankruptcy Save My Home?

Top Kinds of Debt That Can Be Discharged in a Consumer Bankruptcy Case

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