It's no exaggeration to say that personal bankruptcy is the last taboo in America. Let's face it: more people than ever are filing for Chapter 7 or Chapter 13 bankruptcy , yet no one wants to talk about the filing process, or even what bankruptcy really means. Thanks to this taboo attitude, there are numerous myths that perpetuate the often-scary perception of what bankruptcy entails.
That's where this article comes in. Get ready to watch us bust the biggest myths about personal bankruptcy - and what that means for your finances:
Your Reputation Will Be Ruined
Most people have the perception that declaring personal bankruptcy will inevitably expose their financial ruin to the world. However, unless you're a prominent figure, no one will actually know about your bankruptcy. Sure, these documents are available for public use, but that involves someone actually visiting various records offices until they find your bankruptcy case. As you can imagine, that's highly unlikely to happen!
You'll Lose Everything to Personal Bankruptcy
For some reason, many people think that they'll lose all of their assets when they file for personal bankruptcy. While there's no denying that you could lose some assets, federal exemptions mean that you can preserve the assets that you value the most: your home and your car. Check with your bankruptcy attorney to see if you qualify for these exemptions. If you don't, it is in your best interest to file for a Chapter 13 bankruptcy, as this will allow you to keep your home.
You'll Never Get Credit Again
Think about this: If you struggle along with your mountain of debt and continue to have late or missed payments, you'll ruin your chances of ever getting credit for the rest of your life. But if you declare bankruptcy and wipe your financial slate clean, you'll end up getting credit - and improving your rating - within just a few years. It's clear to see that when it comes to restoring your credit, declaring bankruptcy can be the smarter option.
Filing for Personal Bankruptcy is Difficult
Not so - filing for personal bankruptcy can actually be quite easy with the help of a qualified attorney. Better still, bankruptcy lawyers are surprisingly affordable, so you don't have to worry about paying an exorbitant amount of money just to have them work on your case.
Don't let the biggest myths about personal bankruptcy prevent you from achieving the fresh new start you deserve!