3 Bankruptcy Myths Debunked

A lot of times our friends are our most trusted advisors. When it comes to something like bankruptcy, people who haven’t been involved in a bankruptcy case most often give misleading or just flat out wrong advice. If you know someone who has filed bankruptcy –go ahead and find out about their experience—but take advice from people who don’t know the details with a grain of salt.

Here’s why: A lot of people think that bankruptcy is for lazy people, will permanently destroy your credit, and that you will lose your house. When people believe inaccurate myths like these, they may end up letting huge amounts of debt take over their lives without ever getting the credit card debt help they need. People who believe these myths might miss the second chance that they could have gotten with bankruptcy and instead pursue other, less complete, options. There have been too many reports on misleading and sometimes illegal activity done by debt settlement firms: it provides no legal backing, can take years, can seriously impact your credit report, and doesn’t guarantee that any of your debts will actually be erased.

I'll separate the fact from fiction on bankruptcy:

Myth 1- Only deadbeats file bankruptcy. If this were true, I seriously doubt there would be laws set in place to protect them. Bankruptcy was made to protect average people who work hard, but are put in a position of hardship from too much debt. In reality, most people file for bankruptcy because of reasons that are beyond their control, like a medical emergency or a job loss. I know first hand how hard it is. I filed bankruptcy myself! Bankruptcy is for responsible people who recognize that they need help and actively seek out a fresh start.

Myth 2- Your credit history will be destroyed. Bankruptcy is going to be on your credit history, but not forever. If you are thinking about filing bankruptcy because you have a crushing amount of debt, let’s be honest, your credit most likely isn’t looking too good anyway. A bankruptcy can really assist your credit score after giving you credit card debt help you will have a fresh start to rebuild your credit.

Myth 3-Bankrupcy will cause you to lose your home. You know, 99% of the time my clients are able to keep their homes and other property. Protection from foreclosure is just what a good bankruptcy attorney will be helping you get. To be sure, the bankruptcy code specifies several different forms of bankruptcy for individuals with more or less property!  

Comments? Questions? Email Here

© HowtoAdvice.com