Bankruptcy Myths
The matter of bankruptcy comes with a lot of misconceptions and a lot of negative connotations. Many people assume bankruptcy is the easy way out and that bankruptcy suggests that you have failed in the financial department. It is important to clear your mind regarding common bankruptcy myths and misconceptions.
Bankruptcy is not the easy way out of debt, nor does it mean you have failed. In fact, filing for bankruptcy takes courage and maturity; it is the first step in changing your life for the better. Below we reveal the truth about bankruptcy so you can make a more informed decision about whether or not filing for bankruptcy is the best alternative to your debt.
Bankruptcy Myths Busted
I will lose everything I own
This is one of the biggest misconceptions surrounding bankruptcy. While every case is different, most bankruptcy filing will not affect your ability to keep your assets. In fact, most people who file for bankruptcy will keep their car, their home and other assets because these are considered secured debt. It all depends of your situation.
I can get rid of all my debts and start again
Although the main objective in filing for bankruptcy is to start again, you will not be able to eliminate all your debts. There are certain unsecured debts that cannot be eliminated such as child support payments, certain tax debts, alimony and student loans.
Credit Rating and Loan Myths
I can kiss good credit goodbye
It is true that bankruptcy will go on your credit report and can affect your credit rating. It is also true that bankruptcy will remain on your credit report for 10 years. However, bankruptcy will not ruin your credit for this period of time. While you regain control of your finances, your credit rating will continue to rise. It is a lot smarter to take a slight credit plunge now and work towards building it up rather than continue with the overdue payments and wage garnishments, two things that will also negatively impact your credit rating.
I will not be able to get a loan again
Not true. Most financial institutes see a bankruptcy filing as a courageous move. If you work hard after filing for bankruptcy and remain debt-free and in control the second time around, then the lending companies will make their decision based on your present situation, not just your past.
Keep in mind, that, in addition to reading the myth busting facts about bankruptcy, it is also important to speak to a Minneapolis bankruptcy lawyer about your individual financial situation. Our lawyers will assess your situation and help you decide whether bankruptcy is the right option for you. We will answer any unresolved questions and ensure that the entire process and simplified and stress free.
Legal Advice 24/7
We represent bankruptcy clients in matters involving Chapter 7 bankruptcy, Chapter 13 bankruptcy, wage garnishment, creditor harassment, foreclosures and debt consolidation. Contact Myles A. Schneider & Associates, Ltd. 24 hours a day, seven days to week at 763-315-1100 to see how we can help you.
