Bankruptcy Myths

St Louis Bankruptcy Myths

Illinois Bankruptcy Lawyers Helping Clients Obtain Financial Relief

Helping Dispel Misconceptions about Bankruptcy. Unfortunately, many people view bankruptcy as the last and only resort of financially desperate and irresponsible people. This could not be any further from the truth. Bankruptcy provides hard-working Americans with the opportunito regain their financial footing and become productive members of society.

At Bankruptcy Advocates, located in Carbondale, Illinois, and Lathram & Herbert, LLP, located in Collinsville, Illinois, we have helped individuals, families and businesses obtain financial relief for more than 30 years. We have witnessed firsthand the positive effects that bankruptcy has on our clients - we are fully prepared to debunk any and all bankruptcy myths.

In 1934, the United States Supreme Court highlighted one of the positive aspects of bankruptcy:

"It gives to the honest but unfortunate debtor ... a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of pre-existing debt." — Local Loan Co. v. Hunt, 292 U.S. 234, 244 (1934)

Exposing Bankruptcy Myths

Our bankruptcy attorneys offer a hands-on approach designed to answer your questions, explain the law and outline your legal options. They are committed to exposing bankruptcy myths, including the following:

1 I will lose everything by filing for bankruptcy — Individuals who file for bankruptcy are entitled to keep basic items, including clothing, household furnishings, wedding rings and personal belongings. In addition, if you are able to continue making your mortgage or car loan payments, you can keep your house and cars.

2 I should avoid bankruptcy because my credit will be destroyed — The truth is that bankruptcy will remain on your credit report for seven years. However, you likely already have late payments or payment defaults on your credit report, all of which will be erased through bankruptcy. So, in many cases, it is worth the trade-off. After your debts are discharged, you can begin rebuilding your credit almost immediately.

3 Creditors will continue calling me — According to the Fair Debt Collection Practices Act, creditors must stop calling or contacting debtors upon discovering that they have retained an attorney. All communication must then be directed to the attorney. Failure to do so may expose the creditor to liability.

4 I can only file for bankruptcy once — This is not necessarily true. We will carefully review your situation to learn if you will face any obstacles to re-filing for bankruptcy. Every situation is unique. You may qualify, even if you filed in the past.

When Experience Matters, Contact Us

Meet with one of our experienced attorneys to learn more about debt liquidation or debt reorganization.

Email the Carbondale office or call 618 549 9800

Email the Collinsville office or call 618 623 4311

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

Two Firms - One Mission