Filing for Chapter 13 bankruptcy is a deeply personal decision, and for most people, it's the last option after exhausting every other path. But there’s something that makes it even harder than it needs to be: the half-truths, myths, and flat-out lies credit card companies push when they see you might walk away from debt they want you chained to for life.
You feel overwhelmed. Bills are past due. Calls keep coming. You’ve looked into Chapter 13, maybe even spoken to a lawyer, but then the doubts creep in. “Am I making a huge mistake?” “Is it really this bad?” “What if I regret it?”
Credit card companies want you to believe that filing bankruptcy means you've failed, that it will destroy your life, and that they’re the only ones willing to “help” you. But those thoughts? They’re not yours. They’re part of a strategy meant to scare you into continuing to pay them forever.
Let’s pull back the curtain.
Understanding the Pressure: What Creditors Don’t Want You to Know About Bankruptcy
Credit card companies operate on fear. They know the moment you begin considering Chapter 13, you’re taking back control. Not just of your finances, but your peace of mind.
So they start whispering things like:
- “You’ll lose your house.”
- “You’ll never get credit again.”
- “Only deadbeats file bankruptcy.”
But what’s really going on is that Chapter 13 is a legal tool that protects you. It stops collections, halts foreclosures, and forces creditors to accept a court-approved repayment plan. It gives you the timeline, not them. That means the late fees, the interest, and the threats, all of it gets locked down the moment you file.
Why would they want you to know that? They don’t.
Because if you knew what Chapter 13 really meant, you’d file it before the next bill even hit your mailbox.
Lie #1: “Bankruptcy Will Ruin Your Life Forever”
This is the first lie they pull out, and it’s designed to make you feel like you’re choosing permanent failure.
But what does “ruin your life” even mean?
- You’ll still go to work.
- You’ll still keep your family.
- You’ll still have a future.
Yes, bankruptcy affects your credit. But guess what? If you’re buried in minimum payments, missed payments, and revolving debt, your credit is already hurting. Chapter 13 doesn’t ruin your life, but it restructures it.
Credit card companies want you to believe you’re on the verge of being locked out of normal life. But most people who file Chapter 13 are back to stable credit, rebuilding, buying cars, even qualifying for mortgages, within a few years.
You can think of Chapter 13 as not the end of your financial life. It’s the beginning of one you actually have control over.
Lie #2: “You’ll Lose Everything If You File Chapter 13”
Here’s how this lie works:
They paint a picture of someone sitting alone in an empty house, watching the repo truck pull away, with nothing but regret and silence.
But Chapter 13 doesn’t work that way. The entire point of Chapter 13 is to let you keep your stuff, such as your home, your car, your furniture, and your dignity, while catching up on what you owe over time.
Credit card companies want you to confuse Chapter 13 with Chapter 7, or worse, with some Hollywood version of bankruptcy. But under Chapter 13, your assets aren’t liquidated. Instead, you enter into a court-structured repayment plan based on your actual income and expenses.
Filing doesn’t mean losing. It means reorganizing. And more often than not, you get to keep what matters.
Lie #3: “You’re Not Eligible for Bankruptcy, You Make Too Much”
This one gets a little clever.
They’ll say something like, “With your income, a judge won’t approve a bankruptcy. You don’t qualify.”
That’s not how this works.
Chapter 13 is specifically designed for people who earn a steady income but still can’t get ahead. You’re not too successful to file, but you’re exactly who this form of bankruptcy was built for.
What this means is that if you file Chapter 13, they’ll stop getting every spare dollar from you. They know that once a payment plan is set by the court, they’re just one of many creditors, and they no longer get to make the rules.
If you’re making decent money but drowning in debt, you’re the perfect candidate for Chapter 13. It lets you protect your income, catch up on late payments, and finally breathe again.
Don’t fall for the idea that you make “too much.” You might just make enough to fix this the right way.
Lie #4: “It’s Better to Keep Paying Minimums Than File”
Minimum payments are how they keep you hooked.
You think you’re doing the responsible thing. You think you’re making progress. But every month, you watch your balance barely budge, if it even moves at all. That’s not by accident.
Credit card companies want you stuck in the minimum payment loop. It’s designed to keep you paying interest, not paying down debt.
Now here’s what they won’t say: once you file Chapter 13, the endless interest stops. You make one monthly payment to a court-appointed trustee, and it’s structured to pay off debt within three to five years, not thirty.
So ask yourself:
- Would you rather pay forever and never be free?
- Or pay for a few years under protection and walk away clean?
They’ll say filing is giving up. But what’s more responsible—paying something for the rest of your life, or making a plan that actually ends?
Lie #5: “You Don’t Need a Lawyer, Just Call Us and We’ll Work It Out”
This one might sound helpful. Like they’re trying to be reasonable.
But remember, credit card companies don’t represent you. They represent themselves. And they are not interested in giving you options that benefit you more than them.
Here’s what “working it out” usually means:
- Temporary payment pauses that don't stop interest
- Settlements that leave you with surprise tax bills
- “Hardship” plans that expire in months
Meanwhile, you’re still at risk of lawsuits, wage garnishments, or worse.
A bankruptcy attorney is the only one who represents you. They look at your entire financial picture and explain what the law really says, not what creditors want you to think it says.
And once you hire one? Creditors have to talk to your lawyer, not you. No more threatening letters. No more 8:00 AM phone calls.
They want you to believe they’re your only way out. But really, they’re just trying to keep you from opening the door that sets you free.
How a Bankruptcy Attorney Can Help You Cut Through the Noise
It’s hard to know what’s real when you’re overwhelmed with debt, fear, and misinformation. That’s exactly how credit card companies want you to feel: alone, uncertain, and easily influenced.
But you’re not.
The truth is, once you speak with a bankruptcy attorney from Nguyen Law Group, the noise starts to fade. You get answers based on your situation, not scare tactics. You get a plan that’s built around your income, assets, and future, not a one-size-fits-all fear.
We can:
- Walk you through whether Chapter 13 is right for you
- Help you protect your home, car, and income
- Stop the phone calls and lawsuits immediately
- Guide you through a repayment plan that works with your life
And maybe most importantly, we remind you that you have options. You have rights. And you are not your debt. Take the first step toward clarity, peace, and financial freedom.
If you’re considering Chapter 13 or just want to understand your real options, don’t wait for another bill to arrive or another lie to be whispered in your ear. Reach out to us at (909) 328-6280 or fill out our online form to get started.