Common Myths About Chapter 7 Bankruptcy in West Michigan: What Residents in Allegan, Kent, Ottawa, Barry, and Van Buren Counties Need to Know

If you live in West Michigan—including Allegan, Kent, Ottawa, Barry, or Van Buren County—and you’re struggling with overwhelming debt, Chapter 7 bankruptcy might be the lifeline you need. But many myths about bankruptcy keep good people from getting the financial help they deserve.
At Legacy Legal & Business Services, PLC, we help Michigan clients just like you get a fresh start. Below, we debunk the most common Chapter 7 bankruptcy myths so you can make informed decisions and protect your future.

Myth #1: You’ll Lose Everything You Own
Truth: Most West Michigan residents keep their home, car, and personal belongings when they file for Chapter 7 bankruptcy.
Thanks to Michigan bankruptcy exemptions, you’re allowed to protect many of your essential assets. Whether you’re in Grand Rapids (Kent County) or Holland (Ottawa County), most of your property is likely safe.
➡️ Learn more: Chapter 7 Bankruptcy in Michigan:  Who Qualifies and How it Works

Myth #2: Filing for Bankruptcy Will Ruin Your Credit Forever
Truth: While your credit score may drop initially, many of our clients in Allegan and Van Buren Counties see improvements within a year.
Chapter 7 bankruptcy clears unsecured debt like credit cards and medical bills—giving you a clean slate to rebuild your credit score quickly.
➡️ Related read: A Simple Plan to Regain Financial Fitness


Myth #3: Only Irresponsible People File for Bankruptcy
Truth: People in Barry County and across Michigan file for bankruptcy for reasons beyond their control—like job loss, medical bills, or divorce.
Bankruptcy is a legal solution for financial stress, not a sign of failure. It helps responsible people reset and move forward.

Myth #4: You Can’t Discharge Medical or Credit Card Debt
Truth: These are among the most common debts eliminated in Chapter 7 bankruptcy.
Whether you’re a small business owner in Kentwood or a retiree in South Haven, Chapter 7 can give you relief from crippling unsecured debt.

Myth #5: You’ll Never Qualify for a Mortgage Again
Truth: Many clients in Ottawa and Allegan Counties qualify for a mortgage 2–4 years after receiving their bankruptcy discharge.
Responsible financial management after bankruptcy often puts you in a better position to buy a home than before you filed.

Myth #6: Everyone Will Know You Filed
Truth: While bankruptcy is public record, it’s not something people typically search for or find out about unless you tell them.
We work with clients across West Michigan and ensure your case is handled discreetly and professionally.

Why West Michigan Residents Trust Legacy Legal & Business Services, PLC
If you’re in Allegan, Kent, Ottawa, Barry, or Van Buren County, you don’t have to face bankruptcy alone. Our law firm is based right here in West Michigan, and we understand the unique economic pressures our communities face. From Grand Rapids to Otsego, we’re here to help you take back control of your finances.
✅ Schedule your free consultation with a local bankruptcy attorney today: Contact Us at (616) 681-0100 or visit our website to schedule