Bankruptcy is a wonderful tool to help consumers out of financial crises but it is not an instant cure-all. There are many misconceptions surrounding bankruptcy, and its crucial to get a clear picture of what youre dealing with before you decide to jump in. If you are considering a bankruptcy filing, this article will help you separate fact from fiction.

Here are some common bankruptcy myths busted.
All debts are wiped out in Chapter 7 bankruptcy: This is not true, as there are certain types of debts that cannot be discharged. They include child support and alimony, student loans, and debts incurred as the result of fraud. Youll need to check with a bankruptcy attorney to determine which of your debts will be eliminated.

You lose everything you own: All is not lost as each state has exemptions that protect certain kinds of assets, such as your house, your car (up to a certain value), and money in qualified retirement plans, household goods and clothing. Furthermore, if you file for Chapter 13 bankruptcy, youll go on a payment plan which will enable you to keep your assets. Again, a bankruptcy attorney will give you a better idea about what youll be able to hold on to.

You never get credit again: Not true. Before long you will be getting credit card offers again. However, at first they'll just be from lenders that will charge very high interest rates. People who wish to file for Chapter 7 or Chapter 13 bankruptcy Chicago are advised by our experienced bankruptcy attorneys to refrain from running up a lot of bills, but if you need to get an automobile you will be able to get credit.

You can only file for bankruptcy once: This too is false. Filing for bankruptcy does not make you ineligible to file again. Without going into too much detail, just know the bankruptcy code allows a debtor to file for bankruptcy more than once. For more information on the number of times bankruptcy can be filed contact the law offices of Chang and Carlin, LLP.

Everyone will know you are bankrupt: While its true that bankruptcies are a public record, few will go looking, unless you are a celebrity. Heres who will know:
1. You
2. Your lawyer
3. The court
4. Court personnel
5. Your creditors
6. People who you tell

Filing for bankruptcy means you are a "failure", "loser", "bad person", etc: Most people file for bankruptcy after a life-changing experience, such as a loss of job, a serious illness, or a divorce. They've struggled to pay their bills for months and just keep falling further behind. Whatever your situation, filing bankruptcy does not make you a bad person it just makes you a person going through a bad time.

There are many other questions which come to peoples mind when they think of filing for bankruptcy. The law attorneys at Chang and Carlin, LLP are always ready to clear any doubt people have in their mind.

For more information on Bankruptcy law or to schedule a FREE initial bankruptcy consultation with an experienced Chapter 13 bankruptcy lawyer Chicago, call Chang and Carlin, LLP today!

Disclaimer: The content provided by Chang and Carlin, LLP is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Foreclosure services, or Real Estate legal services, call our law firm at 1-866-790-8601 for a Free Legal Evaluation. Chang and Carlin, LLP serves clients in Chicago, Schaumburg. Joliet, and Warrenville