Author Box
Articles Categories
All Categories
Articles Resources

Common Bankruptcy Myths and Misconceptions

February 06, 2012 | Comments: 0 | Views: 141

If you are struggling with financial issues and find yourself falling down a hole of debt, it is extremely important that you do not hesitate to consider all of your options. For many people, bankruptcy can be a frightening prospect, but the truth is that when used correctly, it can be an invaluable tool towards getting your feet on stable ground once more. For this reason, it is extremely important that you get your information straight from the source and do not hesitate to ask questions. Debunking popular myths may not be the easiest thing, but when it's your future on the line, it's important that you take the time to do so.

One of the most persistent myths that keeps people from filing is the thought that if they file, everyone will know. No one likes the idea of their personal life becoming public and many people shy away from filing because they are afraid that will become widely publicized and local knowledge. This, however, is far from the truth. While it's common knowledge when public figures and large corporations file for bankruptcy, it is largely unlikely that your filing will become news. Yes, it is a public proceeding, but as there is a large influx of people who are filing, very few, if any, publications name all of those who are filing. Chances are that if you file for bankruptcy, the only people who will be aware are those you tell and your creditors.

Another myth that is common in popular belief is that you file for bankruptcy that you will lose everything that have. For many, the ability to keep the shirt on their back is worth also keeping their debts - this, however, is a falsehood and a dangerous one. Filing for bankruptcy does not mean that everything that you own will be sold off - far from it! While depending on the chapter that you file, some of your possessions could be subjected to liquidation, this does not happen in a blanket fashion. In many cases, you will be protected by exemptions laws which will protect your most necessary assets and possessions.

Yet another misconception is that if you file for bankruptcy, you will forever be barred from gaining credit again. The truth is that if you file, you will have to experience a black mark on your credit, but this is not permanent and will not serve as a barrier towards regaining and rebuilding credit. In fact, many people who file find that once they have filed, they almost immediately start to receive offers of credit once more. It's true that they will likely have very high interest rates, but the credit will be made available to you. It will just be up to you to ensure that you make smart decisions for your long run financial benefit.

Other myths include the thought that you can file for bankruptcy a limitless amount of time (incorrect, there are mandatory wait periods between bankruptcy filings), that all of your debts will be discharged without question (again incorrect as some debts such as child support are unable to be discharged) and that both spouses have to file for bankruptcy (while practical, it is not mandatory by law). Due to the vast misconception and confusion that surrounds the process, it is highly recommended that those who are seeking to file do not hesitate to get the involvement of an experience bankruptcy lawyer as soon as possible.

For those who find themselves unable to get ahead of their debt, it is important that time is taken to address these myths and find the truth. While it can be tempting to simply buy into these beliefs and think that bankruptcy is a villain or only for the truly downtrodden, it is important to remember that it is a valuable financial tool. When wielded intelligently and when carefully considered and respected, it can be exactly what you need to help you gain the foothold that you need on financial wellbeing. This is why you should not hesitate to contact a local debt relief attorney that you can trust to help address your needs and guide you throughout the bankruptcy process. With the help of a reliable lawyer, you can take the necessary steps towards protecting your legal rights and moving towards firm ground once more.

Blutter & Blutter has over 45 years of cumulative attorney experience in helping Long Island residents file for bankruptcy. From Chapter 7 to Chapter 13, the firm is well-known for their ability to tackle complex debt-related issues and always work to go above and beyond in their efforts to help their clients. Clients know that should they choose to work with the firm that they will always provide one-on-one service when it really counts - doing everything that they can to help their clients on the road to financial freedom. To discuss your case and to learn more about what can be done to help you, do not hesitate to contact a Long Island bankruptcy lawyer from their firm for your free case consultation by calling them toll-free at 800-519-5120.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:



Long Island







The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 564

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 304

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 289

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 301

There are many differences between filing for bankruptcy protection under Chapter 13 than under Chapter 11. A Chapter 13 reorganization is a much more streamlined process. Creditors do not vote on

By: Ryan C Woodl Finance > Bankruptcy Tips Advicel April 26, 2012 lViews: 204

One of the main reasons for the high divorce rate is financial difficulties. While most couples have disagreements about money, for many the problems and the blame for them can get out of hand,

By: Kristie Brownl Finance > Bankruptcy Tips Advicel April 26, 2012 lViews: 200

The question of whether a creditor is a considered an "insider" in a bankruptcy case is an important distinction. When you repay one creditor and not others, it is considered a "preference" because

By: Kitty Linl Finance > Bankruptcy Tips Advicel April 24, 2012 lViews: 158

Ever since the release of the phenomenon called the Internet, it seems that before people go to see a professional, they will take the time to look it up online. Don't get me wrong, the Internet can

By: Bob P Jonesl Finance > Bankruptcy Tips Advicel April 12, 2012 lViews: 171

Over the years, the bankruptcy code has taken on a new complexity that makes it almost imperative that an individual has the help of a bankruptcy attorney to file. It is true, that it is one's legal

By: Bob P Jonesl Finance > Bankruptcy Tips Advicel April 12, 2012 lViews: 144

There always seems to be anincrease in crime when the economy is not doing well. Whether it is increase of violent crimes like muggings and burglaries or white-collar crimes like embezzlement and

By: Kitty Linl Finance > Bankruptcy Tips Advicel April 10, 2012 lViews: 178