Over the years, I’ve had a lot of people ask some questions about how a St Louis bankruptcy works. Most of the questions are straightforward and on point. But I’ve also received questions from individuals that show there is a lot of confusion about how the bankruptcy process works. Below is a small list that I have complied:
- BANKRUPTCY WILL RUIN YOUR CREDIT FOREVER: This is easily the biggest misperception that I hear from people. But the exact opposite is true. For instance, when you file a St Louis Chapter 7, all of your unsecured debts (like credit cards, medical bills, payday loans, etc.) are knocked out completely. This will flip your income to debt ratio overnight. As a result, your credit score will improve dramatically thereafter (usually by as much as 100 points within the first year after filing). This is why the government refers to bankruptcy as a “fresh start / clean slate”!!
- I WON’T BE ABLE TO GO TO MY DOCTOR EVER AGAIN: Trust me when I tell you that your doctor (or the hospital that you normally go to) is quite used to having his/her medical bills discharged through a bankruptcy. That’s just a part of doing business as a medical professional. And 99% of the time, you will still continue to see the same doctor (this is especially true if your primary physician works for a large hospital system, in which the doctor him/herself doesn’t have anything to do will billing, and therefore will very likely have no clue that you’ve filed for bankruptcy).
- I’LL LOSE MY HOUSE AND MY CAR IF I FILE: The main goal of a good St Louis bankruptcy attorney is to make sure that your assets are protected (we don’t worry about your debts getting discharged, because the court will actually do that). And the easiest way to do that is to have a thorough consultation during which your attorney learns all about the things you own (real estate and automobiles included, but also things like stocks and bonds, bank accounts, and potential lawsuits you might be able to file). An experienced attorney can figure out what assets can be protected, and which cannot. For instance, if you have a lot of equity in your house, then filing a Ch7 does not make any sense (because the Chapter 7 Bankruptcy Trustee would take the house, sell it, and use the proceeds to pay off your creditors).
This is just a sampling of the things that I hear most frequently. But the best way to determine whether bankruptcy is right for you is to simply make an appointment to come and see us!! You can give us a call (or fill out our online form)!
The affordable St. Louis bankruptcy attorneys at The Law Office of Jennifer Alter-Rieken have been saving and protecting people’s assets for years. Our goal is to make sure that you keep the assets and property you want, discharge the debts that you want to get rid of, and do it all at an affordable cost to you. All phone conversations and office consultations are free of charge.