Encountering financial difficulties can be a challenging experience for anyone to go through, but it can be an unavoidable aspect of life. Luckily, individuals that have found themselves facing this type of situation may be able to use bankruptcy protection to escape from this trap. However, making the decision to pursue this type of filing can be difficult for individuals that are giving credit to some fairly commonly held bankruptcy belies.
Myth: Filing For Bankruptcy Will Cause You To Lose All Your Possessions
One of the leading reasons that individuals may be hesitant about pursuing this type of filing is due to concerns about needing to lose all of their possessions. While it is true that a bankruptcy filing may involve the liquidation of some assets, there are steps that individuals can take to minimize this. For example, if you currently have a job, it may be possible to file a Chapter 13 bankruptcy. With this type of bankruptcy, you will be required to continue making payments for your debts, but they will be restructured to make it more manageable for you.
If you do not have a source of income, a Chapter 11 filing may be the only option. Under this option, you will be required to liquidate many of your assets to pay back your creditors, but there are numerous exemptions in place to help ensure that you have the assets and possessions that are required to have a fresh financial start.
Myth: It Is Too Expensive For You To Hire A Bankruptcy Attorney
The process of seeking bankruptcy protection can be a complicated matter. As a result, it is critical for individuals to ensure that they are properly represented during these events to make sure that they are making the best decisions for their situation. Sadly, some individuals might assume that they will be unable to afford the services of an experienced bankruptcy attorney. Fortunately, this is not actually the case as these professionals are usually accustomed to working with individuals with limited finances. As a result, they are often able to work out payment plans with their clients to ensure that they can afford this type of representation.
Myth: Your Credit Will Never Recover From This Type Of Filing
Another common belief among some individuals is that a bankruptcy filing is a permanent stain on their credit history. Yet, you should be aware that many individuals that file for bankruptcy are able to relatively rapidly rebuild their credit scores. To help individuals with this task and to avoid problems in the future, the courts will require bankruptcy petitioners to attend initial training courses so that they can be better prepared to make sound financial choices in the future.Share