bankruptcy
If you are struggling with your finances and getting deeper into the hole of debt, then it is time to review all your options and take immediate steps. Many people are scared with the thought of filing for bankruptcy, but the fact is that when this option is used correctly, it can be invaluable tool in making your life a lot more stable. Browse through the internet and get all the valuable information from the reliable resources and do not hesitate to ask questions. Debunking popular myths may not be the easiest thing, but if its about your future, its important that you take the time to do so.
One of the most common myth that discourages people from filing for bankruptcy is that if they file, everyone around them will come to know about their personal decision. They will be fired from their place of work and will hurt in many other ways. This actually, is not the fact. When there are public figures and big corporations filing for bankruptcy without any publicity, it is largely unlikely that your filing will become news. When you file for bankruptcy, it is only you, your creditors, and the people whom you inform about this will know this fact, no one else.
Another myth that is commonly believed is that when people file for bankruptcy, they will lose everything that they have. So they like to stay with their debts. This is however, a falsehood and dangerous belief. If you file for bankruptcy, it does not mean that you will end up losing everything that you have. It entirely depends on the kind of bankruptcy you are filing for. Chapter 7 bankruptcy will liquidate some of your assets, in order to pay off your debts. While in chapter 13, you will be able to keep your assets intact. You will be put in a repayment plan with your creditors through the court trustee.
Another misconception is that if you file for bankruptcy, you will never get credit in the future. The fact is when you file for bankruptcy, the negative remark will stay on your credit report for some time. But this will not stop you from rebuilding or regaining new credit. It is fact that creditors will charge you high interest rates in the beginning, but as you are working on rebuilding your credit over the time, you will be able to make smart decisions.
Another myth in belief is that if one of the spouse needs to file for bankruptcy, the other spouse also has to necessarily file for the same. This is wrong. Due to so many misconceptions and myths that surrounds the process, it is highly recommended that people who are thinking of bankruptcy as an alternative should consult an experienced bankruptcy attorney who will guide you through the proceedings.
Resources:
http://www.uscourts.gov/FederalCourts/Bankruptcy.aspx
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/Bankruptcy/DG_187323
http://www.itsa.gov.au/dir228/itsaweb.nsf/docindex/bankruptcy-%3Ebankruptcy+overview
This entry was posted on Monday, October 8th, 2012 at 4:35 pm and is filed under Bankruptcy. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.