Even the mention of the word “bankruptcy” fills most Americans with dread. For them, it is the very last resort to overcome crippling debt. They feel it is the ultimate sign of failure as an adult. Of course, it is good to pay off your debts, but there are times when it is just not possible.
Bankruptcy — Myth vs. truth
When you understand the value that bankruptcy offers, it can lessen the negative emotions associated with the process. One way of accomplishing this is to debunk a few of the most harmful myths surrounding bankruptcy.
- Losing credit forever: In truth, many people receive an influx of credit offers after a bankruptcy. However, you should be cautious about acquiring new debt.
- Giving up all you own: In truth, you can keep many of your possessions. Examples include a vehicle, clothing, furniture and your home. Even though you will lose a lot, the benefit of becoming debt-free may outweigh your losses.
- Spending time in court: In truth, you will spend little, if any, time in court. For most, this is a huge benefit as they do not want to miss any work when they need a steady stream of reliable income.
- Harassing creditor calls will continue: In truth, as soon as you file your bankruptcy, the harassment from your creditors will stop. Creditors are not allowed to continue collection attempts once a person files.
Our attorneys urge you to continue your education about bankruptcy. Once you let go of the myths and learn the facts, you will be better able to make informed decisions about your future. Our blog and website contain more about bankruptcy. Please continue exploring our resources.