Deciding whether or not to file for bankruptcy can be an overwhelming process. There’s so much information to process, you have to fully evaluate your financial situation, and all of that needs to happen in the midst of what is usually a very stressful time. The first step is to know what your options are, as well as what is true and false. There is so much misinformation when it comes to filing bankruptcy, here are some of the biggest myths:
You can’t file bankruptcy because the laws have changed
You will lose all your assets
Bankruptcy is going to destroy your credit worthiness
This is absolutely untrue. It is true that the bankruptcy laws did change in 2005. This happened because there was rampant abuse in the system and the law was changed in an attempt to weed out those who are abusing the system from those who really need it. The truth is, if you are in a financial position that requires bankruptcy, you will likely be able to file for it. There are a few more hoops to go through (The right attorney will help you navigate this in the best way possible) and the pricing structure is different, but don’t let this myth deter you from taking charge of your finances.
The majority of people who file bankruptcy do not lose all their assets. A lot of our clients who have filed bankruptcy own homes and property, and except for a small minority, almost all of our clients have maintained their properties. It is essential to consult and attorney so that you have a clear understanding from the beginning whether you are in the majority of people that can keep their homes.
This myth has been largely perpetuated by creditors to scare people away from filing for bankruptcy. As soon as two years after filing for bankruptcy you can have a 700+ bankruptcy score and can get great rates on cars and houses. This may be the single biggest myth surrounding bankruptcy.
These are the 3 biggest lies about filing for bankruptcy, but the truth is there are so many more falsehoods floating around out there. Don’t allow your financial future and freedom to be impacted by misinformation. Contact the Foothill Law Group today for a free consultation and get a clear picture of what bankruptcy means for you.