Bankruptcy Myths

All too often, people believe myths about bankruptcy and misunderstand its benefits. The fact of the matter is there are millions of people who leverage the benefits of bankruptcy every year to discharge crushing debt and get a clean financial slate.

Those who don't benefit from bankruptcy — creditors — have benefited from this incorrect information, sometimes disseminating it. Some of the most common misconceptions include:

  • Destruction of credit: Unquestionably, one must rebuild credit following bankruptcy. That said, with the improvement of debt-to-income ratio, it is likely you will receive qualified credit offers months following a discharge. From there it is completely possible to rebuild credit.
  • All property will be lost: Many assets are exempt in the case of filing. In some cases it can be correct to let assets go, but a home, car and certain retirement accounts are usually not subject to repossession.
  • If you file for bankruptcy, you have done something wrong: The fact of the matter is, most bankruptcies are a result of unforeseen circumstances that were unavoidable.

If you are considering bankruptcy in and around Sandusky, Ohio, we at The Law Offices of Shelly L. Kennedy, Ltd., will take the time to fully inform you of your rights, clearly explain the benefits of bankruptcy and dispel any myths or misconceptions. From there, our lawyer and team can help you leverage the solution that is best for you and your circumstances.

To reach out and schedule an initial consultation to discuss any Chapter 7-related issue with our bankruptcy attorney, call 419-967-6039 or email the firm.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.