Common Bankruptcy Myths

Filing for bankruptcy is never a pleasant experience – it’s stressful, overwhelming, and can leave you feeling uncertain and anxious regarding the future of your finances. The public perception of bankruptcy is that it is only for the financially irresponsible and often leaves you with nothing to your name, which is simply untrue. To make the process easier to digest and understand, our Brevard County bankruptcy attorney dispels a few of the most common bankruptcy myths.

Myth #1: You’ll Lose Everything

Regardless of what you and others believe, filing for bankruptcy does not always mean you’ll be giving up your house, car, and other valuable assets. On the contrary, it’s very likely that you’ll be able to keep most of your possessions. Depending on the type of bankruptcy you file, some cases are referred to as “no-asset” cases, which means as the debtor, you will not be giving up your assets.

Myth #2: People who File Bankruptcy are Financially Irresponsible

There are a number of reasons why someone would find themselves needing to file for bankruptcy – long-term unemployment, the expenses associated with being involved with various legal matters, such as divorce, and everyday financial struggles can all lead to bankruptcy. Even the most financially stable individual can find themselves in debt. Regardless of your financial history, having to file for bankruptcy does not mean you are a reckless spender or irresponsible.

Myth #3: Bankruptcy Will Ruin Your Financial Future

While bankruptcy will not tarnish your financial reputation or future, you can expect to have limited access to credit and be subjected to pay higher interest rates for a few years following your bankruptcy. Many people find, however, that their credit scores improve after filing for bankruptcy and sets them up for financial success to repair their financial future.

Myth #4: Bankruptcy is a Cure-All

Bankruptcy may be the best solution, but it’s important to remember that it is not a cure-all for every financial obstacle you may face. Chapter 7 bankruptcy discharges only certain debts, while Chapter 13 only reduces or reorganizes debts. Neither one of them offer a quick fix-it solution, and usually require that you go through credit counseling.

At The Buchalter Law Group, our Brevard County bankruptcy lawyers understand that sensitive financial matters require compassionate support, honest counsel, and helpful advocacy. As our client, you will see firsthand the direct attention you receive from our trusted legal team.

Take the first step towards a debt-free future today. Call (321) 320-6088 to request a free case evaluation.

Related Posts
  • Will My Bankruptcy Case Be Private? Read More
  • Is There a Limit to the Amount of Debt Chapter 7 Can Discharge? Read More
  • What Is a Reaffirmation Agreement in Chapter 7? Read More