Common Bankruptcy Myths
Dispelling Myths About Bankruptcy in Cleveland
Many people simply hear the word “bankruptcy” and assume the
worst without getting all of the facts first. This 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 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.
Call today to learn more!
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 or
discharging debts. In most cases, your home and car are exempt from being liquidated. Furthermore,
when you file for Chapter 7 or
Chapter 13 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”
There are a wide variety of benefits available when you file for bankruptcy
if you are suffering from mounting debts.
Benefits of filing for bankruptcy include:
- Fast relief to your debt issues
- Immediate end to pestering calls from creditors
- The ability to keep your home and car
- A safe, responsible, and legal way to settle the 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
more than 45 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.