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Bankruptcy Myths

Bankruptcy Lawyers Dispel Common Myths

Learn the Facts About Bankruptcy

Bankruptcy requires learning the strong distinction between truth and fiction. We can take the time ensure that you base your decision on truth rather than myths you may have heard.

At Jackson & Oglesby Law LLC, we can prepare you by helping you get the facts about bankruptcy. Please do not fall into a trap of believing the myths about bankruptcy. 

Contact us today for affordable services!

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Legal Assistance from Jackson & Oglesby Law LLC

If you have chosen to file for bankruptcy, you must begin by gaining a comprehensive education on how it works and how a lawyer from our firm can help. If you would like more information on bankruptcy or any other related issue, please feel free to seek legal counsel from our firm. At Jackson & Oglesby Law LLC, we are Indianapolis bankruptcy lawyers who serve clients throughout Noblesville, Fishers, and across the Indianapolis area.

Our affordable firm is committed to helping people get the facts regarding bankruptcy and providing them with encouragement to pursue debt relief. We offer a free bankruptcy case evaluation to discuss your financial condition. As you pursue debt relief through bankruptcy, you will need legal counsel by your side.

Contact us today to learn more!

  • “Thanks to Dana Oglesby I am debt free.”
    “I am now able to move on with my life.”
    - Former Client
  • “Always available to answer any questions.”
    “They made me feel at ease and explained every step we would take.”
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    “Everything was taken cared of in a quick and professional manner.”
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    - R&E
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    “I was so impressed and would recommend her and Jackson & Oglesby in general, to anyone seeking these type of legal services.”
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Myth: Since Bankruptcy Laws Have Changed, It Is Now Impossible to File for Bankruptcy

Bankruptcy laws evolve over time. The most recent change was the institution of the means test for people who choose to file under Chapter 7 bankruptcy. Means tests evaluate your household income to determine how it compares with the state median income. If your income is lower, you have qualified for Chapter 7 bankruptcy. If you are above the median income, however, you are not automatically disqualified to file for bankruptcy. Even if you do not pass the means test, you are still eligible for debt relief under Chapter 13 bankruptcy.

Myth: If I File for Bankruptcy, I Will Be a Credit Risk for Life

Your bankruptcy will stay on your credit report for 10 years. Despite this fact, however, bankruptcy will enable you to improve your credit score. Once you get your discharge, you will likely receive offers to get credit cards, although many may not be favorable. If you use these credit cards judiciously and practice discretion, you will be able to rebuild your credit. After this is accomplished, you likely can make larger purchases on credit in the future, such as a car or home.

Myth: I Will Lose My Home or My Car if I File for Bankruptcy

Based on your circumstances and how delinquent your payments are, you can lose your home or automobile in bankruptcy. Foreclosure should not be the end result, however. Most often, people will be able to keep both their house and car in bankruptcy due to allowable exemptions that your attorney can explain. If you file Chapter 13 bankruptcy, however, you will be able to repay your past-due mortgage or car payment over a three- to five-year period.

Myth: Filing for Bankruptcy Is a Personal Failing

The single biggest myth associated with bankruptcy is that it is recognized as a personal failing. Generally speaking, people file for bankruptcy due to factors outside their control, such as expensive medical treatment, the loss of a job, a divorce, or other major unexpected events. Bankruptcy is a process that has substantially improved debtors' financial and emotional well-being. The American Bankruptcy Institute assessed that in 2011, nearly 40,000 individuals and businesses filed for bankruptcy to become debt free. You are not alone in this endeavor.

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