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Common bankruptcy misunderstandings

Common bankruptcy misunderstandings
"""Many consider the prospect of declaring bankruptcy to be terrifying and humiliating. Creditors and neighborhood gossips have widely disseminated the notion that declaring bankruptcy is the greatest possible personal failure. The reality is that the majority of individuals are driven to bankruptcy not by their own recklessness and lack of responsibility, but by adverse life circumstances that are largely beyond their control. For example, medical expenses are one of the primary causes of personal bankruptcy. Divorces, job losses, natural disasters, and serious accidents can also prompt individuals to consider bankruptcy.

Without a proper comprehension of what a successful bankruptcy filing will and will not accomplish, it is unlikely that you will be able to make the best decision for your particular situation. Although it is possible to educate yourself on the fundamentals of bankruptcy, it is difficult to gain a comprehensive understanding of the situation without consulting a competent and experienced bankruptcy attorney.

Five Frequently Held Fallacies

Creditors and their advocates have been overwhelmingly successful in preventing debtors from receiving adequate information regarding available debt resolution options. The following are the five most commonly held beliefs about bankruptcy:

Chapter 7 bankruptcy eliminates all debts; however, child support, student loans, and other types of debts cannot be eliminated.

A bankruptcy filing requires a person to sell all of his or her property; however, in most cases, debtors are permitted to retain all of their property.

Access to credit will be lost forever; however, you can gain access to numerous high-interest credit options shortly after filing for bankruptcy, and filing for bankruptcy can help you rebuild your credit record in the long term.

Since a bankruptcy proceeding is conducted in the United States Bankruptcy Court, the matter becomes a public record; however, unless you inform people about your filing or are seeking new credit or other opportunities, the issue is unlikely to ever arise.

Chapter 13 filings require full repayment of debts; a Chapter 13 bankruptcy plan requires that an individual make all payments in accordance with the terms of an agreed payment arrangement, which may be for any portion of outstanding debt.

" - https://www.affordablecebu.com/
 

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"Common bankruptcy misunderstandings" was written by Mary under the Finance / Wealth category. It has been read 116 times and generated 0 comments. The article was created on and updated on 02 June 2023.
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