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Bankruptcy Myths

Bankruptcy Myths

You've heard it before: Bankruptcy ruins your life. This is simply not true. At The Law Offices of James M. Kelly, we want to dispel any of those rumors you have heard about filing for bankruptcy and help you understand how Chapter 7 or Chapter 13 bankruptcy just might help you get a fresh financial start.

Elgin Bankruptcy Attorney Dispelling Bankruptcy Myths

From his law office in Palatine, Illinois, founder James M. Kelly has been assisting individuals and families with their debt relief needs for more than 23 years. Through Chapter 7 and Chapter 13 bankruptcies, our team of professionals has helped hundreds of clients eliminate their debt and move on to a happier, healthier and more financially stable way of life.
Throughout the years, The Law Offices of James M. Kelly has helped address our clients' concerns regarding several aspects of bankruptcy. Some of these questions included:

Will I lose my home or car immediately after I file for bankruptcy?

While this answer varies depending on your situation and the amount of equity you have in each asset, the general answer is no, your major assets will not be taken away from you immediately after you file for Chapter 7 or Chapter 13 bankruptcy.
In a Chapter 7 bankruptcy, your assets that have significant amounts of equity may be liquidated to pay back your debt. However, from the day that you file for bankruptcy until the day it is finalized, you will have a period of time where all liens, garnishments and creditor harassment will stop.
In a Chapter 13 bankruptcy, your debt will be reorganized into a multi-year plan that will allow you the time you need to make payments on your home mortgage, car loans and other debt that you owe. This means that you will likely be able to keep your home and your car if you are able to keep up with the payment plan within the Chapter 13 bankruptcy.

Will I be able to obtain credit again?

Yes. It usually takes 12 to 24 months to begin rebuilding your credit history. Within that time, you can aid in building your history by acquiring a modest amount of new lines of credit, making timely payments on your credit card bills and other loans and avoiding default.
If you have overwhelming debt and have not paid your bills in months, chances are your credit score is already very low so filing for bankruptcy will only help you.

Will I be able to buy a home again?

The answer is yes. Like your credit, it may take a small amount of time before you are able to have the credit history you need to be approved for a home loan. With the right amount of care and patience, you can create a solid credit history and be the owner of new home not long after completing your bankruptcy.

Learn more about our bankruptcy practice by visiting our Bankruptcy Overview page.

Contact The Law Offices of James M. Kelly Today

We invite you to contact our lawyer at The Law Offices of James M. Kelly at 847-202-1616, or visit our Contact page, to schedule a free initial consultation regarding your family law or bankruptcy matters. We are located in Palatine, Illinois. We accept all major credit cards and offer flexible scheduling to suit your needs.

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