Misconceptions That People Commonly Have About Bankruptcy

  • Misconceptions That People Commonly Have About Bankruptcy

Misconceptions That People Commonly Have About Bankruptcy

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Filing for bankruptcy is not easy, most importantly due to the commonly held fears that people hear and believe in. it is nothing to be embarrassed about or be scared of. Listed below are a few common misbelieve that people have-

  1. People Judge you – NO one has soo much time to sit and judge you, so you needn’t be embarrassed. The attorney and judge are busy doing their work and no is going to judge you on thoughts like you are filing to dodge debts or that you have bad financial skills. Bankruptcy can happen to anyone.
  2. It is a long and tedious process – Well, to be honest, all court proceedings are long and time-consuming. However, you will hardly ever have to visit the court except once when you have to file for your petition and a trustee is assigned. It is he who will be handling and working around your assets for liquidating and calculation
  3. Public Proceedings are bad – Despite the proceeding being public, no one really is thinking about you. The debtors are concerned only about their money and the outcome of the proceeding.
  4. You Lose everything that you own – As against the misconception, you do not lose everything. There are options where you can keep your car, home as well as personal property. But this totally depends on the chapter under which you are filing for bankruptcy. However, there are certain things that you might have to give up as well depending on your situation. For example, a luxury car may need to be replaced by a standard car.
  5. Credit Scores go very down – Yes, it is true that your credit scores go down when you file for bankruptcy, but they do improve in a couple of years. And once it is normal, you can again with its help be able to buy an asset like a house.
  6. Impact on Job – Filing for bankruptcy does not have any direct impact on your current job, but if you are looking for a new job, few companies tend to check your credit score while hiring, so that may act as a barrier to getting new jobs. However, the current employer cannot fire you just because you have filed for bankruptcy.

As already mentioned, filing for bankruptcy is not an easy task. Therefore it is important that you consult a good attorney before you go ahead with filing for bankruptcy who can counsel you and help you make the correct assessment. To book an appointment – Call: 888-297-6203