Don’t fall for these 3 misconceptions about bankruptcy

| Feb 28, 2020 | Uncategorized

You are in a situation where you feel like your finances aren’t in your control. Despite trying your hardest to take on more work and pay down what you owe, you’re still missing payments and dealing with fees and fines every month. Situations like this are overwhelming for people, and it’s no wonder that you feel like giving up. Fortunately, bankruptcy is an option that can help you.

“Bankruptcy will ruin me!” you may think, but the truth is that bankruptcy is designed to help, not hurt, you. There are many misconceptions that it’s time to clear up. Here are three things that you may think are true that actually aren’t at all.

1. I will lose everything if I go through a bankruptcy

This one misconception holds many people back from filing the bankruptcy that they need. Bankruptcy is designed to help people, not to hurt them. In fact, there are dozens of exemptions that you may be able to use to keep many of the items in your possession today. Did you know that people give up property in only 5% of bankruptcy cases as a result of the exemptions they can be granted? Of course, exemptions do vary by state and income, so this is something to discuss with your attorney. Overall, however, the takeaway is that you won’t lose everything.

2. I will lose my job if I have to file for bankruptcy

In the majority of cases, your bankruptcy will have nothing to do with your job. In some cases, it can even be beneficial, because it shows that you do what you need to do to resolve problems in your life. In many situations, the only time bankruptcy would come up is if you were going to handle a business’s finances.

3. I earn too much to be able to seek bankruptcy, so I just have to pay this debt back

This is also untrue. Almost anyone can file for bankruptcy. Based on your income, you may be able to file for Chapter 7 or Chapter 13. Your attorney will talk to you about the different kinds of bankruptcy that may apply to your case, so you can learn more about your specific options.

It’s necessary to know more about bankruptcy before you eliminate it as a possible solution. If you’re dealing with financial trouble, this could be the right option for your case.