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You Wont Be Living in a Cardboard Box: Popular Myths About Bankruptcy

The Castle Law Office is a St. Louis bankruptcy law firm that helps citizens in Missouri and Illinois get through the bankruptcy process with terms that are favorable to them. We have helped thousands of people in the greater St. Louis area file for both Chapter 7 and Chapter 13, and we have also helped them learn smarter ways to handle their money and re-establish credit once they have successfully filed. If you live anywhere near St. Louis, whether you are in Illinois or Missouri, contact the Bankruptcy attorneys at the Castle Law Office for a free legal consultation today.

“Bankruptcy” can be a pretty frightening word. It has mostly negative associations. But you should understand that most of the things that people claim that they know about bankruptcy are little more than urban myths.

Here are some of the more common misconceptions about bankruptcy, and the truth behind the falsehoods.

Everyone Will Know That You Have Filed For Bankruptcy.

Are you as big as Microsoft? Are you dating Madonna? Unless you are a person or corporation of stature, nobody will really care. It is true that bankruptcy is a public legal process, but the only people who will find out about your bankruptcy are your creditors. The media will not be camped outside your house, nor will there be flyers distributed around your neighborhood proclaiming your new bankrupt status.

I’ll Lose Everything.

This is the myth that keeps people from helping themselves. People have this image of a public auction of everything you own. It doesn’t work like that. While the bankruptcy laws vary from state to state, every state has exemptions that protect certain kinds of assets, such as your house, your car (up to a certain value), money in qualified retirement plans, household goods and clothing. With a qualified and experienced bankruptcy attorney, you should be able to keep everything that really matters.

I’ll Never Qualify for Credit Again

Not true. In fact, you will be eligible for credit almost immediately. The downside is that it will be offered to you from lenders who will be tacking interest rates that verge on predatory. (Oddly enough, this is often what got so many people into financial trouble in the first place.) But if you act responsible and don’t ever borrow what you can’t pay back immediately, eventually your credit rating will repair itself.

Only Losers and Deadbeats File for Bankruptcy

Widowers or people who go through messy divorces hardly qualify as losers. You can also add titans of industry, famous actors, and even presidents. And as the recent shaky economy can tell you, money that was earned over years can disappear in an instant. That can happen to anyone.

Filing for Bankruptcy is Too Difficult and Complicated

It really isn’t. In fact, you don’t even really need an attorney. But if you want a bankruptcy that will end up in ways that are positive for you, consulting an attorney is crucial.

I’m Married. I Can’t File Bankruptcy Because Then My Wife/Husband Will Have to File.

This is not necessarily true. It might be the case if the debts were built up in both of your names, but if the debts belong solely to you and not your spouse, you can file as a single individual and not as a team. In fact, in many cases, a married person who files for bankruptcy usually finds it a lot easier to get through the post bankruptcy process thanks to the support of the non-bankrupt spouse.

Bankruptcy is not the end of the world, nor should it be a source of unbearable shame. It is simply America’s way of providing you with a safety net and a way to start over.

At the Castle Law Office, we make it a point to get St. Louis area citizens through bankruptcy without having their lives disrupted and upended. We know from experience that a life lived under debt is not much of a life at all. If you or a loved one in St. Louis is considering filing for bankruptcy, contact the Castle Law Office for a free legal consultation today.

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