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Common Bankruptcy Myths We Take the Time to Listen

Common Bankruptcy Myths

Learn the Truth Before Filing

If you are overwhelmed with debt that you cannot repay, you are probably considering filing for bankruptcy. However, if you are like most people, some of what you know about bankruptcy might be colored by several of the prevalent myths in our society. Before you begin exploring your options, take a moment to dispel these common bankruptcy myths, so you do not end up making any decisions based on these misconceptions.

Find out if bankruptcy is right for you by contacting Law Office of Kimberly A. Sheek today at (704) 842-9776 to schedule a consultation.

Dispelling Common Bankruptcy Myths

Moving forward with a bankruptcy is a big decision that will have a major impact on your financial future, so you must ensure you are properly informed.

We will debunk some of the most common myths about bankruptcy and help you make a better decision regarding your financial future:

  1. You will lose everything in a bankruptcy: Many people believe they will have to give up all of their most prized possessions. The truth is that, in most Chapter 7 cases, debtors are able to keep their possessions. Many of your basic assets that you will need for everyday life will likely be exempt and, chances are, your creditors will not want the assets that are not exempt. That said, although credits probably do not care about your flat-screen television, they may care about the BMW in your garage, which may go to auction. If you file a Chapter 13 bankruptcy, you will most likely be able to keep your assets, though their value will figure into your repayment plan.
  2. Bankruptcy will wipe all your debts away: A Chapter 7 and a Chapter 13 bankruptcy can relieve you of most of your debts, but not all of them. For example, if you have student loans, these are generally not forgiven. Alimony and child support are also not dischargeable. If you have credit card debt or unpaid medical bills, however, these will likely be discharged. Taxes may be dischargeable if the taxes are old enough and fit the criteria to be discharged.
  3. Bankruptcy will ruin your credit forever: Of course, you can expect your credit to suffer after filing for bankruptcy, but the fact is that your credit is probably not in great condition if you are struggling with debt to begin with. A bankruptcy will only remain on your credit report for 7 to 10 years, but your score will likely begin to bounce back sooner than that if you tried to struggle along making the minimum monthly payments for 10 to 15 years.
  4. You will not be able to buy a house or a car: Not true! Many people qualify for a car loan right after filing bankruptcy. Of course, the interest rate could be anywhere from 16-28%. People often qualify for a mortgage within 3-5 years after filing bankruptcy as long as they rebuild their credit and have the income to qualify for a mortgage.
  5. You cannot file for bankruptcy more than once: It might seem hard to believe, but it is totally possible to find yourself in a dire financial situation more than once, which is why you are allowed to file for bankruptcy more than once. However, you will have to wait 8 years before you can file for a Chapter 7 again. If you want to file for a Chapter 13 bankruptcy again, you can usually file immediately after your previous reorganization comes to an end. That said, multiple bankruptcy filings will not look good, so make sure this is the best choice for you before you move forward.

Contact a Bankruptcy Attorney Today!

If you are considering filing for bankruptcy, contact the team at the Law Office of Kimberly A. Sheek. We provide free consultations.

Call us today at (704) 842-9776.

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    • Over a Decade of Legal Experience
    • Published Author & Speaker at Bankruptcy Seminars
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    • "Thank You For Your Support!"
      Kim and Team have done a great job over the past few years helping me navigate this financial disaster brought on by divorce. They always kept me informed throughout the process and Carol kept me on track with my classes. Kim is very straight forward and was always responsive to my emails. Cause, I have 20 questions! Thanks Kim for helping me make some very important life decisions the past few months 2022! Who knew? If you had told me last year I'd be debt free, sold my house and a 680 credit score, i wouldn't believe it. Thanks to you I've landed on my feet. There is life after Chapter 13.
      K Davis
      Charlotte, NC
    • "Kim did a Great job with my case!!!"
      Kim was Fantastic in assisting me with my bankruptcy case. I suffered a pulmonary embolism back in 2019 and deal with mild/moderate memory & retention issues and Kim was so incredibly understanding, helpful and considerate of my condition while assisting me through the emotionally challenging process of filing for bankruptcy. I am extremely grateful I found Kim and had her successfully guide me through this process. I Highly Recommend Kim to anyone having to file for bankruptcy. You will be so very glad you did!
      BSF
      Locust, NC
    • "Amazing"
      Kimberly Sheek is an Amazing Attorney to work with. She is pleasant very patient and turn around time is awesome. She is passionate about her job and she makes you feel like she cares . She returns calls promptly If I ever need an Attorney she will be my first call.
      Richard Taylor
      Charlotte, NC
    • "Awesome Experience"
      Kimberly has truly been a pleasure to work with throughout my bankruptcy process. She is very sweet, patient, and honest. She truly made this process so much easier to deal with and she put my fears to rest. She always responds to calls and emails promptly and her turnaround time with my case was amazing! I highly recommend her if you’re in need of an attorney.
      Donna Clarke
      Charlotte, NC
    • "Of Course You Want The Best - Well Here She Is"
      My recent experience with Kimberly Sheek Law Office has been nothing but a positive one. I was very concerned about everything the bankruptcy process would entail. Mrs. Sheek was direct, detailed, always pleasant to speak with and always got back to me in a timely manner. She graciously walked me through every part of the process, clearly explaining my options, and clarified which steps I would need to take in order to cleanly go through with the legal proceedings. I highly recommend Mrs. Sheek to anyone in need of a Bankruptcy Attorney.
      Mary
      Huntersville, NC
    • "Great attorney. Excellent service."
      Kim is an outstanding attorney she's very thorough in her work and in explaining bankruptcy proceedings I'm most grateful to her for helping me work through this issue and getting it behind me.
      M. Williams
      Charlotte, NC
    • "NC"
      Kimberly A. Sheek is the best attorney ever! I was very nervous going into this bankruptcy procedure and had no idea what to expect. Kim assured me from day one that all would be well explained the procedures pretty much step by step to make sure I would be prepared. When I went to the creditors meeting, she came over and reassured me that I had nothing to worry about and she was right, as it took no more than 10 min at the most and went quite smoothly. I received my discharge papers right around the time she said I would. If you are looking for a qualified, smart, caring and educated BK Attorney, you cannot go wrong with Kim.
      Paulette B.
      Charlotte, NC
    • "Good Experience"
      I was looking for a bankruptcy attorney for my daughter. Being new to the area I began searching the internet for one. After narrowing down my search, I selected Attorney Kimberly. When we met with her for the first time I felt confident that we had the right person. We were fearful going in but relaxed when we left. I really liked how she worked with my daughter, explaining how the different laws work so that my daughter had all of facts before making a decison. Even later when we had questions, Attorney Kimberly returned our calls or sent us an email. If you are looking for someone that will put your mind to rest, knowledgeable, friendly and concerned about YOU then I suggest you hire Attorney Kimberly Sheek.
      A. Thomas
      Charlotte, NC

    Hear From Our Happy Clients

    At Law Office of Kimberly A. Sheek, your satisfaction is our priority! See for yourself what our clients have to say about working with us.

      "Thank You For Your Support!"
      Kim and Team have done a great job over the past few years helping me navigate this financial disaster brought on by divorce. They always kept me informed throughout the process and Carol kept me on track with my classes. Kim is very straight forward and was always responsive to my emails. Cause, I have 20 questions! Thanks Kim for helping me make some very important life decisions the past few months 2022! Who knew? If you had told me last year I'd be debt free, sold my house and a 680 credit score, i wouldn't believe it. Thanks to you I've landed on my feet. There is life after Chapter 13.
      K Davis
      Charlotte, NC
      "Kim did a Great job with my case!!!"
      Kim was Fantastic in assisting me with my bankruptcy case. I suffered a pulmonary embolism back in 2019 and deal with mild/moderate memory & retention issues and Kim was so incredibly understanding, helpful and considerate of my condition while assisting me through the emotionally challenging process of filing for bankruptcy. I am extremely grateful I found Kim and had her successfully guide me through this process. I Highly Recommend Kim to anyone having to file for bankruptcy. You will be so very glad you did!
      BSF
      Locust, NC
      "Amazing"
      Kimberly Sheek is an Amazing Attorney to work with. She is pleasant very patient and turn around time is awesome. She is passionate about her job and she makes you feel like she cares . She returns calls promptly If I ever need an Attorney she will be my first call.
      Richard Taylor
      Charlotte, NC
      "Awesome Experience"
      Kimberly has truly been a pleasure to work with throughout my bankruptcy process. She is very sweet, patient, and honest. She truly made this process so much easier to deal with and she put my fears to rest. She always responds to calls and emails promptly and her turnaround time with my case was amazing! I highly recommend her if you’re in need of an attorney.
      Donna Clarke
      Charlotte, NC
      "Of Course You Want The Best - Well Here She Is"
      My recent experience with Kimberly Sheek Law Office has been nothing but a positive one. I was very concerned about everything the bankruptcy process would entail. Mrs. Sheek was direct, detailed, always pleasant to speak with and always got back to me in a timely manner. She graciously walked me through every part of the process, clearly explaining my options, and clarified which steps I would need to take in order to cleanly go through with the legal proceedings. I highly recommend Mrs. Sheek to anyone in need of a Bankruptcy Attorney.
      Mary
      Huntersville, NC
      "Great attorney. Excellent service."
      Kim is an outstanding attorney she's very thorough in her work and in explaining bankruptcy proceedings I'm most grateful to her for helping me work through this issue and getting it behind me.
      M. Williams
      Charlotte, NC
      "NC"
      Kimberly A. Sheek is the best attorney ever! I was very nervous going into this bankruptcy procedure and had no idea what to expect. Kim assured me from day one that all would be well explained the procedures pretty much step by step to make sure I would be prepared. When I went to the creditors meeting, she came over and reassured me that I had nothing to worry about and she was right, as it took no more than 10 min at the most and went quite smoothly. I received my discharge papers right around the time she said I would. If you are looking for a qualified, smart, caring and educated BK Attorney, you cannot go wrong with Kim.
      Paulette B.
      Charlotte, NC
      "Good Experience"
      I was looking for a bankruptcy attorney for my daughter. Being new to the area I began searching the internet for one. After narrowing down my search, I selected Attorney Kimberly. When we met with her for the first time I felt confident that we had the right person. We were fearful going in but relaxed when we left. I really liked how she worked with my daughter, explaining how the different laws work so that my daughter had all of facts before making a decison. Even later when we had questions, Attorney Kimberly returned our calls or sent us an email. If you are looking for someone that will put your mind to rest, knowledgeable, friendly and concerned about YOU then I suggest you hire Attorney Kimberly Sheek.
      A. Thomas
      Charlotte, NC