The Top Myths about Personal Bankruptcy

The Top Myths about Personal Bankruptcy

Personal Bankruptcy

Personal bankruptcy is something most people try to avoid, but there comes a time when you don't have a choice but to file. In situations where there is no chance of recovering from your debt on your own, bankruptcy may be the best option. However, some people still shy away from this option because of the myths surrounding it. Dispelling these myths can help you make the right choice.

Myth: No Chance of Credit

Some people hesitate to file for bankruptcy because they fear not being able to get credit in the future. It will only take 2 – 4 years to reestablish your credit history and obtain a good credit score.

Myth: The Newer Laws Prevent Bankruptcy

In 2005, the personal bankruptcy laws changed. Many people mistakenly think these changes make it impossible to file for bankruptcy. Everyone is still eligible to file bankruptcy. However, some people with very high income may need to file a chapter 13 reorganization plan rather than chapter 7.

Myth: You Will Lose Your Belongings

You can keep all your belonging, including your home and car, so long as you remain current on your secured obligation.

Filing for a personal bankruptcy can be intimidating, especially with the lack of truth that is floating around. However, even if you are intimidated by filing, it can work to your benefit to talk to a bankruptcy lawyer about your options. You aren't obligated to file when you meet with a lawyer, but it can help you see your options clearly. Contact us to make an appointment to discuss your potential case.