Top Bankruptcy Fears

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Lansing Bankruptcy @ Okemos Legal Group, PLLC

Okemos, MI

Practice Areas

Bankruptcy

Filing for bankruptcy is a nerve wracking experience. I hear the same concerns from those facing financial difficulties.

They Will Take My Car:

If your car is worth less than $4,000 (the current exemption amount), you may keep your car. If you have a loan on your car, you may keep that if you sign a reaffirmation agreement and the bankruptcy judge agrees to it. The judge doesn't want to leave you without a way to get to the places you need to go. Everyone's situation is different. There are often other ways to be able to keep higher value automobiles.

I Will Lose My House:

With home values soaring, many have equity in their homes. If you have equity you want to keep, and it exceeds the exemption amount, a chapter 13 bankruptcy may be in order. If you live in a state that offers state exemptions, your home may be exempt under their amounts. In a chapter 13, you may keep any asset you wish. But, you will end up paying your creditors something over a 3-5 year period. This depends on the your approved plan.

My Credit Will Be Ruined:

Usually, credit scores rise when a bankruptcy is filed. This is because all of those old debts are discharged. You then have a blank slate with a bankruptcy on it. Your credit won't be good, but a lot of times it improves with a filing.

Most mortgage lenders will allow a person to obtain a mortgage if it has been 3 years since the filing. Mortgage lenders differ. Most apartment complexes will rent to someone immediately after a bankruptcy is filed. Also, I've seen people get a car loan immediately after a bankruptcy was completed.

A Chapter 7 bankruptcy will stay on your credit for 10 years. It will have diminishing affect to your score as time passes.

Everyone Will Know

Bankruptcy filings are public information' however, it takes a fair amount of effort to discover who has filed. I don't know any non-attorneys who have searched for this information. Most likely, no one will know you filed if they haven't been told.


Bankruptcy is one of the strongest tools one can use to get onto a path to financial independence. If you have thought about filing, get educated. Only you can make the best decision for yourself. A qualified bankruptcy attorney can help you make this decision.

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