3 Misconceptions About Bankruptcy

Posted on: 14 December 2015

Oftentimes, people find themselves struggling to make ends meet. Whether it be because they lost their job or their hours got cut, everyone's situation is different. Regardless of what the reasoning is behind it, you don't have to struggle to get through it any longer. You should be able to enjoy life instead of being stressed out all the time about how to make ends meet. Thankfully, there is a solution that can put an end to your finance problems. Bankruptcy has been helping people for quite some time. Unfortunately, many people don't opt for this option because of something they heard in the past. Don't let the following misconceptions deter you from filing for bankruptcy.

You cannot keep anything.

Oftentimes, people assume that they aren't allowed to keep anything. They figure they have to give their vehicles, cars, and other loan installment items back to the bank. That isn't the case. You can choose to reaffirm the debt and continue making the loan payments to the lender so you keep the item. It's up to you what items you want to keep and what ones you want to walk away from. Your lawyer can better advise you of this.

You have to continue making payments on your debts.

Many people think they have to keep paying on all of their debts. That isn't the case. All of your credit cards, medical bills, and other unsecured debts can be written off in a bankruptcy. Once you file for bankruptcy, you don't need to pay those individuals any longer. If you are ever unsure of what you need to pay and what you don't, ask your attorney for advice.

It will ruin your credit for years.

While some think that bankruptcy is going to destroy their credit, that isn't always the case. If you already had a bunch of bills sitting out there that you hadn't been able to pay on for months, your credit is already damaged and bruised. By filing bankruptcy, you are wiping the slate clean and starting over fresh with no debt on your credit file at all. This could actually improve your credit score.

Once you know the actual facts about bankruptcy, you can make an informed decision about what is in your best interest. Don't ever assume there isn't an answer available to you. There are always options and solutions to help guide you on the path to financial freedom. For assistance, talk to an attorney like Greg Dunn Bankruptcy Attorney.