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3 Bankruptcy Myths You Should Ignore

June 11, 2021

Unfortunately, there are many myths out there about bankruptcy. Whether it’s the result of misinformation or misunderstandings, you should know the truth if you are considering filing for bankruptcy in Tierra Verde or Miami. Make sure that you consult with a highly qualified Florida bankruptcy attorney so that you are confident and prepared for your case.

1. Bankruptcy Is For Irresponsible People

One of the biggest myths surrounding bankruptcy is that it’s only an option for people who are irresponsible. If the recession and the last several years have taught us anything, it’s that there are many situations that can cause you to end up in bankruptcy, and in many cases there should be no shame about. All it takes is one major accident or a medical diagnosis to turn your world upside down, and things can spiral out of control quickly. Families that find themselves facing bankruptcy may have even been well off before.

Most people who decide to follow through with filing are actually doing the most responsible action possible by taking ownership of their future. Doing nothing and ignoring the issues can actually make your life much worse and in this way, you can see how bankruptcy is actually a positive step forward for individuals and families who want to get out from under a big financial burden.

2. You Will Lose Your Home & Other Belongings

Another myth surrounding bankruptcy is that you will lose all of your belongings and your house. If you are going into foreclosure, bankruptcy can actually cause a stay on your pending foreclosure. You may even be able to keep your house depending on the situation. For example, if you file for Chapter 13 bankruptcy, which includes a repayment plan, if you can stick to the plan you layout, you could keep assets so long as you continue holding up your end of the deal. Speak to a bankruptcy attorney for more details about what this process means for your belongings.

3. Your Credit Will Be Destroyed For Life

Finally, some people have the impression that bankruptcy will destroy your credit for life. Of course, a major move like bankruptcy is going to have an impact on your credit. The good news is that taking this responsibility to rebuild your credit can be much better for you over the long run. Use the bankruptcy experience to build your own future and shape better finances for you.

Over time, your credit will repair, so long as you make wise decisions post-bankruptcy. Opting for bankruptcy does not have to destroy your credit forever. Many Tierra Verde and Miami individuals contemplating bankruptcy use this legal process as a fresh start to allow them to regain control of finances and move forward with their lives.

Despite these many myths about bankruptcy, when used properly, it can be a great tool for empowering you and your future. If you find yourself buried in debt and you are frustrated with the constant stress and pressure, you need to contact a bankruptcy attorney who can tell you about your rights. Bankruptcy may be just what you need to put yourself back in the driver’s seat.