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On the myths of bankruptcy, and why they aren’t true

On Behalf of | Apr 5, 2018 | chapter 7 bankruptcy | 0 comments

Filing for bankruptcy is a huge step in any person’s life. When you file, it is likely that you will have plenty of fears, and you may even feel guilty. A significant portion of these feelings is likely due to the stigma of bankruptcy: namely that only irresponsible people use bankruptcy to get out from underneath their financial problems.

But this is a myth. Bankruptcy is a legal process, one that is a critical solution to a serious problem. It should really be seen as a tool in your arsenal to turn your life around. It is not a cheap strategy to clear debts.

People who file for bankruptcy may be hounded by the many myths of the process. Besides the one outlined above, remember that all of the following are myths:

  • You will lose everything in the bankruptcy (to the contrary, there are exemptions you can utilize to protect your prized assets)
  • Your credit score will be permanently blemished (to the contrary, with hard work and proper financial management, your credit score can improve after the initial dip following a bankruptcy filing)
  • You will lose your job and your reputation will be ruined forever (to the contrary, these simply aren’t true and if you work hard after your bankruptcy, your life can return to normal)

Don’t let bad information, misconceptions, and myths about bankruptcy filings and the bankruptcy process prevent you from utilizing this legal step. If you have questions about anything related to bankruptcy, consult with an experienced attorney.