South Holland Bankruptcy Lawyer Illustrates Two Misconceptions About...

There is a misconception out there that if you file for bankruptcy, the whole world is going to know about it.  In reality, no one is going to know about it other than you, the trustee, and the people that you owe money to.  Technically, the fact that you filed a chapter 7 bankruptcy is public record; however, somebody would have to know how to find that information.  They would have to know to go down to the clerk of the US Bankruptcy Court, or they would have to know to get on a particular website and look up your information.

Another misconception people have out there is if they file for bankruptcy, they’re going to lose all their property.  The truth is, in 99 percent of the cases, the debtors keep all their property.  They keep their home provided they continue to make their first, second, third, or however many mortgages they have on the property.  They keep their vehicle provided they continue to make their auto financing payment.  They keep all their household goods, all the amount in their bank account, all their clothing, and all their retirement.