If you are on the brink of filing bankruptcy, some of the myths you have heard about the process may deter you from moving forward. We are here to assure you that in some cases, bankruptcy is the right path to choose, which is why we have dispelled some of the most common myths about this legal process below.
- You’ll Permanently Ruin Your Credit – Bankruptcy will likely harm your credit, but this does not mean you will have a poor credit rating forever. After you file, you can try obtaining a secured credit card to start rebuilding your score. Within a few years, with continual dedication, you may find that your credit score improves.
- Bankruptcy Eliminates All Types of Debt- Generally speaking, bankruptcy only eliminates certain types of debts. For example, if you file Chapter 7 bankruptcy, the process will discharge most unsecured debts, including credit card charges, medical bills, and personal loans. But bankruptcy cannot discharge student loan debt, back taxes and unpaid child support payments.
- Only the Financially Irresponsible File Bankruptcy- Life happens, and bankruptcy may become your only way to secure financial relief during a difficult period in your life. You may, for example, choose to file bankruptcy after losing your job, going through a divorce, dealing with a serious illness, or experiencing another catastrophic life event.
Our law firm wants to make sure you have the right information before you file bankruptcy. Contact us today to ask any questions you have and to set up your consultation with our legal team to discuss what steps to take next.