5 Myths About Bankruptcy In Michigan That Could Cost You

In this article, you can discover…

• Whether bankruptcy will permanently damage your credit score.
• Who can benefit from filing for bankruptcy in Michigan.
• Whether nonpayment of debts could lead to further legal troubles.

Myth # 1 : Filing For Bankruptcy Will Permanently Ruin Your Credit Score

Not at all; with the right financial choices, your credit score post-bankruptcy can improve. As long as you maintain income, do not take on new credit card debt, and pay off your debts in a timely manner, your credit score will begin to repair itself over time.

Myth # 2 : You Can Not Get Approved For A Loan After Filing For Bankruptcy

While it is up to individual lenders to determine your eligibility, there are no laws in place making it impossible to obtain a loan after bankruptcy. Be aware that you may have to wait for your credit score to improve to qualify for a loan. Other lenders may require you to wait a year or more after your debt is discharged to qualify. Having said that, many people who have filed for bankruptcy go on to be approved for future loans.

Attorney Vincent Carlson is a knowledgeable, respected bankruptcy law attorney serving Michigan. For over 15 years, he has helped clients just like you make sense of bankruptcy law, get out from under debt, and move forward with hope and a new financial beginning.

Have questions, or in need of legal guidance? Reach out to Vincent E. Carlson & Associates, PLC for an initial consultation today.

Myth #3 : Bankruptcy Is Only For People With Poor Money Management

Absolutely not. I have helped clients from every imaginable walk of life file for bankruptcy. Whether you are 18 years old or 90, whether you have one creditor or 50, and whether you have a master’s degree or a high school diploma, bankruptcy can help you get out from under debt.

Myth # 4 : Everyone Will Know You Filed For Bankruptcy

While bankruptcy forms and cases are accessible through specific online portals, most people will have no idea that you filed for bankruptcy unless you tell them. Your bankruptcy case will not be published in a newspaper, and you have the freedom to choose who you do or do not tell about your case.

Myth # 5 : You Can Go To Jail For Not Paying Your Debts

You can not go to jail for failing to pay back debt such as credit card debt. Through bankruptcy, these debts can be managed or discharged entirely. An exception to this rule would include child support payments, which you could be jailed for refusing to pay, and which is not dischargeable through bankruptcy.

Still Have Questions? Ready To Get Started?

For more information on Bankruptcy myths in Michigan, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (231) 726-4357 today.