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4 Common Misconceptions about Bankruptcy in St. Louis

Jan. 24, 2023

There is a lot of information out there about bankruptcy – both good and bad. If you are considering filing and have done some research, you may have come across some misconceptions about bankruptcy and what it means to file. Here are some of the more common myths and misconceptions our office hears from clients and from the general public. For more information, call our office today to speak with a bankruptcy lawyer in St. Louis.

You’re Not Old Enough to File for Bankruptcy!

If you are on the younger side, you may get advice from friends and family who say that you’re “too young” to file for bankruptcy and that you have time to fix your debt. Well, that may be true in some instances, but for young people who are truly buried in bills, then filing for bankruptcy can be more of a blessing than a curse. The reality is that if you’re in financial trouble and don’t see a way out, filing as soon as possible means that you’ll be back on your feet sooner.

You Have to Be a Financially Irresponsible Person to File for Bankruptcy

You may think that only people who are financially irresponsible file for bankruptcy, but nothing could be further from the truth. In fact, U.S. News and World Report points out many other reasons someone would file, such as if they have recently gone through a divorce, or spontaneously lost a steady job. 

 When You File Bankruptcy, You’ll Lose Everything You Have!

 Bankruptcy, contrary to popular opinion, is something that is supposed to help you, not hurt you. So, although it is hard to silence the myth that when someone files bankruptcy they will lose everything they have, any St. Louis bankruptcy lawyer will tell you that it is not true. There are ample exceptions available to filers which allow filers to keep certain amounts of specific types of assets. For example, there are exemptions for work tools, vehicles, personal property, and even the equity in your home. In fact, in most cases, filers are able to claim all of their assets as exempt, meaning they will not need to give up anything they own to enjoy the benefits of bankruptcy.

You Should File for Bankruptcy Without a Lawyer to Save Money

You can file for bankruptcy by yourself, but that doesn’t mean you should. Filing for bankruptcy is an extremely complicated process, and even the federal courts advise against filing without a lawyer. Filing with an attorney will ensure that you obtain the best outcome to your case.

 

Contact Your St. Louis Bankruptcy Lawyer Today

If you are behind on your bills and don’t see how you can catch up, you should call an attorney as soon as you can. For more information about how filing can improve your financial future, feel free to call me today at AKS Law.