Not So Fast, My Friend! Debunking Bankruptcy Myths
Perhaps because of urban legends, it’s quite common to stumble upon myths associated with personal bankruptcy. In this article, we’ll separate fact from bankruptcy fiction.
Top Bankruptcy Myths
- If I file for bankruptcy, everyone and their mother is going to know about it! Unless you’re a celebrity or a major corporation, the only folks who will get a whiff of you filing for bankruptcy are your creditors. While it is a public legal proceeding, there are far too many people filing for bankruptcy for publications or other outlets to keep up with. In other words, while your bankruptcy filing is HUGE news for you, it doesn’t amount to a hill of beans to anyone else.
- I can’t file for bankruptcy if I have a job, right? Wrong! This is complete nonsense. In fact, if you’re filing for Chapter 13 bankruptcy, the only way to fund your plan is to actually have a job.
- I’ll lose everything if I file for bankruptcy? This one is the biggie that prevents many people from filing. While each state has its own bankruptcy laws, every one of them allows for exemptions so that assets like your house, car, retirement plans, clothing, etc. will be protected.
- Bankruptcy is for deadbeats only. Again, completely untrue. In fact, the majority of people who file for bankruptcy do so only after a life-changing event, like a loss of employment or a divorce. Most have struggled to keep current with their bills but just fall further behind.
- I’ll never qualify for credit again! Are you kidding? While you probably will not be able to get the best interest rates, you’ll definitely be able to acquire credit. In fact, people who file for Chapter 13 bankruptcy can borrow money while their case is going on.
Call The Oswalt Group for Factual Bankruptcy Info
The prevalence of myths surrounding bankruptcy means there’s a great deal of misinformation about it as well. If you’re considering bankruptcy but are not quite sure if it’s the right move for you, call us here at the Oswalt Group – we’ll separate fact from fiction. Our number is (602) 225-2222.