Struggling with overwhelming debt can feel isolated, especially when surrounded by misinformation about bankruptcy. Whether considering Chapter 7 or Chapter 13, separating fact from fiction is crucial for making informed financial decisions. At Robert J. Adams & Associates, also known as The Bill Slayer, we’re here to empower you with the truth about bankruptcy.
MYTH 1: Filing for Bankruptcy Means You’ve Failed
Fact: Bankruptcy isn’t a sign of personal failure. It’s a financial tool designed to help you regain control when life throws curveballs—like job loss, medical expenses, or a sudden drop in income. Filing for bankruptcy can be a responsible and proactive step toward achieving financial freedom.
MYTH 2: You’ll Lose Everything If You File for Bankruptcy
Fact: Bankruptcy laws are designed to protect—not punish—you. Many people fear they’ll lose their homes, cars, and personal belongings if they file for bankruptcy. In reality, Illinois law allows exemptions that protect essential assets, including your home, vehicle, retirement accounts, and household goods. Whether you file under Chapter 7 or Chapter 13, the goal is to give you a fresh start, not strip you of everything.
MYTH 3: Bankruptcy Ruins Your Credit Forever
Fact: While bankruptcy will have an initial impact on your credit score, it’s far from permanent. In fact, for many people, filing for bankruptcy is the first step toward rebuilding credit. With responsible financial habits—like paying bills on time and using credit wisely—you can start improving your credit score soon after your bankruptcy is finalized. Some of our clients are even surprised by how quickly they receive credit offers again.
At Robert J. Adams & Associates, we provide the tools and guidance to help you rebuild your credit score to 700 or higher in as little as 12 to 24 months.
MYTH 4: Bankruptcy Is for Irresponsible People
Fact: This is one of the most damaging misconceptions. Most individuals who file for bankruptcy are responsible, hardworking people who encountered unexpected financial hardships. From medical bills to divorce or job loss, life’s unforeseen challenges can push anyone into debt. Filing for bankruptcy is a responsible way to manage your financial difficulties and protect your future.
MYTH 5: You Can Only File for Bankruptcy Once
Fact: You can file for bankruptcy more than once, though there are waiting periods between filings. For example, after filing Chapter 7, you must wait eight years before filing another Chapter 7. If you filed Chapter 13, you might be eligible to file Chapter 7 after six years. If needed, Chapter 13 repayment plans remain a viable option in between. Bankruptcy laws are designed to help you rebuild, even if you need more than one chance.
MYTH 6: Bankruptcy Solves All Financial Problems
Fact: While bankruptcy provides significant relief from certain debts, it doesn’t address all financial obligations. Bankruptcy can eliminate debts like credit card bills and medical expenses, but it generally doesn’t discharge student loans, child support, or certain types of taxes. It’s essential to have a comprehensive plan to manage all your financial responsibilities and build a stronger financial future.
UNDERSTAND THE FACTS—MAKE INFORMED DECISIONS
At Robert J. Adams & Associates—also known as The Bill Slayer—we believe that informed decisions are the best decisions. By debunking these common myths about bankruptcy, we empower you to make the best choice for your financial future. If you’re struggling with debt and considering bankruptcy, we’re here to guide you every step of the way.
Don’t let myths stand in the way of a fresh start. Contact us today for a free consultation and take control of your financial future.