Common Bankruptcy Myths
Bankruptcy is a hard decision to make and many people worry about the long-term effects. While bankruptcy may not be the easiest decision it is often necessary to regain your financial independence and start fresh.
The Truth of Bankruptcy
There are numerous questions that arise when considering bankruptcy. It’s important to know the facts when weighing your decision.
- Does my income exclude me from bankruptcy?
Different chapters of bankruptcy suit different needs. Though more complex, a Chapter 7 bankruptcy and Chapter 13 bankruptcy can each offer different options for individuals. Each case must be examined and specially tailored to suit your specific needs.
- Will everything I’ve worked for be liquidated?
Exemptions are made available for all bankruptcies. It is possible to keep significant assets.
- What will others think of me?
The social stigma of bankruptcy has diminished as the economy has declined. Most people do not realize how many of their friends, neighbors and colleagues are in similar situations. Doing what is best for you and your family must come first.
- Will I lose control of all my financial interests?
Like assets, many investments can be protected under bankruptcy. A fresh start doesn’t necessarily mean starting over.
- Can my credit record ever recover?
You will have opportunities to rebuild your credit sooner than you think. Like every other inquiry and account, your credit history will reflect the bankruptcy for 10 years at most, however depending on your financial situation your credit score may not take the financial hit you think it will.