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Debunking Some of the Most Common Bankruptcy Myths

Debunking Some of the Most Common Bankruptcy Myths
"""Myths about bankruptcy are not novel. People enjoy discussing bankruptcy, but regrettably, the majority of them do not understand what they are discussing. This has led to the propagation of lies about the procedure that range from alarming to absurd. While filing for bankruptcy is in and of itself a harmless process, believing these bankruptcy fallacies can prevent you from filing, preventing you from receiving the financial assistance you need.

One of the most widely circulated fallacies is that if you file for bankruptcy, you will have poor credit for ten years. This is one of those myths with a grain of truth that has been grossly distorted over time. Even though the bankruptcy itself will remain on your credit report for ten years, this does not mean that you cannot regain excellent credit. In actuality, while the bankruptcy is undoubtedly a negative note on your credit, this is not what is truly hurting your score. In fact, the decisions that led to you filing for bankruptcy, such as failing to pay your expenses, can be far worse than the filing itself.

This myth frequently bleeds into the second fallacy, which is that if you declare bankruptcy, you will never be able to rebuild your credit, even after the bankruptcy has been removed from your credit score. Again, this is false. In fact, once you have filed for bankruptcy, your financial situation will be significantly more manageable. This means you will have a clear slate with no debts and a much more organized financial situation. You will likely become a much more desirable candidate for credit companies, and you will begin obtaining credit offers shortly after filing. However, it is advised that you choose wisely and make financially sound decisions so that you do not find yourself back where you began.

Another common misconception about bankruptcy is that if you file, you will lose everything you own and will never be able to purchase expensive items like a house or vehicle again. This is not true. Numerous exemptions exist under state and federal law to secure your assets, ensuring that you are not left with nothing but the shirt on your back. It is true that, depending on the chapter you file under, you may lose some of your assets to liquidation, but you will be able to retain the ones necessary to your livelihood. Similar to the credit, you will be able to purchase these items again, and if you make the right financial decisions, it won't be that long.

The majority of people mistakenly believe that declaring bankruptcy equates to being a negative person; however, nothing could be further from the truth. If you have been struggling with debt and filing for bankruptcy could be the solution you need to get your finances back on track, then you should file. Don't fall victim to the prevalent bankruptcy fallacies; instead, consult a local law firm to obtain the information you need. The sooner you begin your battle to learn the truth about bankruptcy, the sooner you will be able to regain your financial stability.

The best means to understand what you're up against? Get the facts directly from the horse's mouth. Do not heed the advice of your acquaintances, family, or even coworkers. The best method to determine the truth is to consult a local bankruptcy lawyer. By speaking with them, you will learn more about the procedure and how to manage it most effectively. You will also be able to answer any concerns you have about the process, such as how long it will take and how your life will change after the bankruptcy is filed.""

" - https://www.affordablecebu.com/

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"Debunking Some of the Most Common Bankruptcy Myths" was written by Mary under the Finance / Wealth category. It has been read 166 times and generated 0 comments. The article was created on and updated on 01 June 2023.
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