It is no doubt that claiming bankruptcy is an emotionally difficult step for anyone. The sad truth is, that sometimes filing for bankruptcy is the only option for getting back on your feet. It can still be a very daunting thing as far too many people who would benefit from declaring bankruptcy have to do so because of the misconceptions and myths out there.
This is why it is important to keep your facts straight and face the prospect of bankruptcy. How else will you be able to make an informed decision based on facts and not on rumors? We’ve compiled a list of some of the most common bankruptcy myths and why you should avoid believing them.
Myth #1: Only Deadbeats File for Bankruptcy
This simply isn’t true. The economy has been brutal to millions of hard-working people who get into debt for reasons beyond their control. Anything from a job loss, divorce, or even mounting medical bills can plunge somebody into debt. Within 60% of all bankruptcy filings and the United States are due to hefty medical bills. That’s why Congress created bankruptcy laws to help relieve to people who have had things happen out of their control.
Myth #2: I Will Lose All My Property in a Bankruptcy Case
Again this isn’t true. In many states, they have a law called asset protection that allows you to keep certain property no matter how much money you owe. It eased 1 of the reasons why you should work with an experienced bankruptcy lawyer as they will know the ins and outs of the bankruptcy laws.
Myth #3: I Will Lose My Job if I File Bankruptcy
Once again this is also a lie. Federal laws prohibit discrimination by either a private government employer because you file for bankruptcy. This means that you will not be fired or otherwise denied work because you have debts. This is one reason that many people don’t file for bankruptcy because they are afraid that if they do they will lose their job.
Myth #4: I Will Never Establish Credit After Bankruptcy
It is true that bankruptcy will remain on your credit history for at least 10 years. If you are diligent about paying your bills on time the rating may recover as quickly as two years. The truth is that reestablishing your credit might be easier after bankruptcy because a lot of your debts will be discharged and he will start with a clean slate. It takes an enormous amount of work but it is completely possible to see your credit score rise and stay in a good place after bankruptcy.
We know that bankruptcy is often a scary topic to tackle. That is why we understand that is important and find a qualified bankruptcy lawyer, like Carolyn Secor, P.A., who understands and can help walk you through the entire bankruptcy process without judgment.