Debt is big business. That’s why there are so many people out there invested in getting you indebted and keeping you that way. One of the ways they do this is by spreading myths about bankruptcy, which is the only legal way to have your debts forgiven. Let’s take a look at some of the three most common myths about bankruptcy and why you shouldn’t believe them:
Myth #1 – If you file bankruptcy, you will lose all of your money and property. This myth is designed to keep the debtor from filing bankruptcy in the false belief that avoiding bankruptcy will somehow magically protect their money and property. The truth is that when you don’t pay your debts creditors can use the courts to seize your money and property, while bankruptcy stops them in their tracks. The same people who claim that bankruptcy will cause you to lose your money and property will be hard pressed to show you a bankruptcy debtor who was not saved from financial disaster by filing bankruptcy. It is bankruptcy that protects your assets.
Myth #2 – If you file bankruptcy, you will never be able to own a home or finance a car. This is so far from the truth that it would border on hilarious if people didn’t actually believe it. The truth is that bankruptcy gives debtors a clean slate on which they can rebuild their credit worthiness. Many debtors go on to own homes and finance vehicles within a couple of years after filing bankruptcy.
Myth #3 – Bankruptcy is a long, arduous and expensive process that the average debtor cannot afford. The truth is that bankruptcy is a lot less expensive than fighting creditor lawsuits that come with unpaid debt. Debtors are more than willing to spend money on their bankruptcy process because it often means that they will become free from thousands of dollars of debt.