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Common Bankruptcy Myths

Cleveland Bankruptcy Attorneys Give You the Facts

Many people simply hear the word “bankruptcy” and assume the worst without getting all of the facts. It can lead to thoughts of ruined credit scores, struggling in poverty, and a mark on your record. However, bankruptcy can provide you with the relief that you are seeking in this time of financial struggle.

Our Cleveland bankruptcy attorneys are here to make sure that you have all of the facts about bankruptcy and what it can do for your life. We've helped clients in Cleveland, Akron, Canton, Elyria, and Garfield Heights.

Myth: “Only Irresponsible People File for Bankruptcy”

Almost anyone can find themselves in a situation where they need to file for bankruptcy. Sudden accidents, family changes such as a divorce, the need for legal services, or any number of incidents can leave even the most astute with more debt than they know what to do with. Do not let this stigma stop you from getting the help you need.

Myth: “Bankruptcy Will Ruin Your Credit Forever”

While bankruptcy does remain on your record for some time, filing for bankruptcy is one very effective way to start rebuilding your credit. If you continually are unable to pay for credit card bills or other debts, this will damage your credit far worse than bankruptcy will. Bankruptcy effectively returns you to a “clean slate” and with regular payments, you will find that credit can be quickly rebuilt.

Myth: “I Will Lose My Home & My Car”

The opposite is often true when it comes to filing for bankruptcy. Chapter 7 bankruptcy involves the liquidation of assets as a means for settling debts. In most cases, your home and car are exempt from being liquidated. Furthermore, when you file for bankruptcy, and effect called an “automatic stay” occurs. This will stop foreclosure on your home, giving you a chance to settle your affairs and keep your home.

Myth: “There Are Few Benefits to Filing Bankruptcy”

In fact, there are a wide variety of benefits to filing for bankruptcy if you are your suffering from mounting debts.

The benefits of filing for bankruptcy include:

  • Fast relief to your debt issues. Chapter 7 can often be settled in as little as 4 months.
  • The immediate end to pestering calls from creditors.
  • The ability to keep your home and car.
  • A safe, responsible, and legal way to settle most outstanding debt.
  • A chance to begin rebuilding your credit score.
  • Immediate contact from car dealerships to assist you in purchasing a car
  • Letters from credit card companies approximately four months after your bankruptcy was filed.
  • Ability to finance a home one to two years after your bankruptcy is filed.

Get Peace of Mind

Don’t continue to lose sleep as you wonder how you will figure out a solution to your bankruptcy problems. Our Cleveland bankruptcy attorneys are here to support you throughout the process and help you get free from debt once and for all. Our firm serves Cleveland, Akron, Canton, Elyria, Garfield Heights, and the surrounding area. With over 50 years of combined experience, an exclusive focus on bankruptcy law, and over 18,000 cases successfully handled, Knevel Law Co. LPA is here to help.

Schedule your free consultation at any time to get started on taking control of your financial future.