If you are considering personal bankruptcy, you have probably started the process of researching Chapter 7 bankruptcy and Chapter 13 bankruptcy online, and you might have spoken with friends or family members about the process. While some preliminary research into the consumer bankruptcy process can be helpful for debtors who are thinking about filing for bankruptcy, it is important to remember that there is also a lot of misinformation available. Indeed, according to articles in NerdWallet and U.S. News & World Report, consumers encounter many different bankruptcy myths. We want to dispel some of those myths for you and help you to understand more clearly what you should expect when it comes to the consumer bankruptcy process in Ohio.
Common Myth #1: Your Credit Will Never Recover
Many people hear drastic warnings about the effects of personal bankruptcy, and they commonly hear that their credit will never recover and that they will never again be eligible to finance a motor vehicle or to obtain a credit card. To be clear, this is a myth. While your credit will not immediately bounce back after you receive a bankruptcy discharge, you can begin taking steps quickly to rebuild your credit and to remain on track with your finances. Often, applying for a retail credit card or a secured card is a good option because it is a bit easier to obtain these credit cards than others. Once you have a credit card again, you can begin rebuilding your credit by making charges and paying them off each month. After several months pass of timely payments, you can often be approved for a traditional credit card.
Common Myth #2: You Will Never Be Able to Get a Mortgage
Similar to the myth we just discussed your credit being ruined forever, it is a mistake to think that bankruptcy means you will not be able to apply for and be approved for a mortgage. Indeed, this is another common bankruptcy myth. While you will need to rebuild your credit after bankruptcy in order to be eligible for a mortgage again, there are certainly mortgage options available to those who have filed for consumer bankruptcy. In fact, many people file for Chapter 13 bankruptcy in order to stop a foreclosure and to get caught up with mortgage payments.
Common Myth #3: Student Loans Will Not Be Discharged in Bankruptcy
Many people hear that they cannot discharge student loans in Chapter 7 or Chapter 13 bankruptcy. We want to be clear in saying that this is a myth. Although it is more difficult to discharge student loans in bankruptcy than certain other types of debt like credit card or medical debt, you should know that student loans are indeed dischargeable in many bankruptcy cases.
Contact an Ohio Bankruptcy Attorney for Assistance
Are you considering personal bankruptcy in Ohio? We can dispel many common myths about consumer bankruptcy for you today, and we can answer any questions you have about the bankruptcy process. When you are ready to file, one of our experienced Toledo bankruptcy attorneys can represent you every step of the way. Contact Groth & Associates for more information about how we can assist you.