Unless you have already been through a bankruptcy, you probably have several misconceptions about the process and its results. Through reading unauthorized information online or hearing exaggerations from others who have filed, what you think you know about Chapter 13 and Chapter 7 may not be accurate. Unfortunately, believing in these myths keeps many Lawrenceburg, IN, residents from taking advantage of the benefits bankruptcy offers.
For example, Chapter 13 bankruptcy is especially prone to misconceptions. We want to eliminate a few of these misconceptions so that you can understand the benefits that come with Chapter 13. Here are some of the common mistaken beliefs about Chapter 13 and bankruptcy in general:
- It’s no different than Chapter 7: A great many people think that Chapter 13 and Chapter 7 are about the same, but that isn’t so. Chapter 13 works more like a consolidation plan because it allows you to repay your debts as a group, often saving you money in the process.
- You can’t get future credit: Many believe that filing for bankruptcy means you will never rebuild your credit. In truth, you are likely to receive an influx of offers from credit card companies shortly after emerging from the process.
- You will lose your home: Chapter 13 does not necessarily mean you will have to give up your family home. Under the repayment plans available with this type of bankruptcy, it is often possible to keep the home you love.
Before you make the major decision to file for any type of bankruptcy, it’s important to separate myths from facts. Rather than relying on the Internet and people who might not have a good grasp of the facts, take your questions to a legal professional. You can also learn more by continuing to review our website content.