When it comes to bankruptcy, there are things you need to know and things you need to forget.
With so many myths circulating, it can be difficult to avoid bad advice as you consider your next move.
Here are some of the most common bankruptcy myths:
-- You will lose everything. Many people believe that filing for bankruptcy will result in the court taking all their assets. This is not the case.
-- You can get rid of all your debt. There is no doubt that filing for bankruptcy can relieve you of some of your debt. However, there are some types, such as student loans and tax debt, that don't come into play.
-- Bankruptcy will ruin your financial future. Yes, filing for bankruptcy will impact your credit score and credit history. Even so, with each passing year, you can begin to take steps in the right direction.
-- Bankruptcy means you're a failure. Nothing could be further from the truth. Despite the fact that you have made some mistakes in the past, it doesn't mean that you are a personal failure. In fact, by filing for bankruptcy, you're showing yourself that you're willing to take steps toward making things right.
If you're considering a bankruptcy filing, it's important to separate fact from fiction. By doing so, you'll have a better idea of where you stand and the steps you need to take.
Maybe you decide in favor of bankruptcy. Maybe you decide that this is not right for you at the present time. Either way, you need to know the facts.
Source: Nerd Wallet, "5 Bankruptcy Myths Dispelled," accessed May 29, 2017