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3 Myths about bankruptcy

| Oct 17, 2016 | Bankruptcy Law |

Are you struggling with debt and considering filing bankruptcy? Don’t let myths and misconceptions about bankruptcy dictate whether or not you get help.

Rather, learn all you can about bankruptcy and your specific options. Here are three common myths about bankruptcy, dispelled:

1: Only irresponsible people file for bankruptcy

People can lose control of their finances for any number of reasons: job loss, illness or injury, disability, divorce, etc. A major life change can have a huge impact on an individual’s finances.

Bankruptcy may be a viable option for individuals who have lost their financial grip, no matter what their past, job status, education, etc.

2: Filing for bankruptcy will ruin your credit

Most people who file for bankruptcy already have a decreased credit score. While bankruptcy may have a temporary effect on credit score, it allows individuals who are struggling with debt to get a fresh start. When debt is reorganized (through Chapter 13 bankruptcy) or eliminated (through Chapter 7 bankruptcy), many people find it easy to get back on their feet. Most people are able to raise their credit score after filing bankruptcy.

3: If you file for bankruptcy, you will lose all of your possessions

Another common misperception about bankruptcy is that once you file, you will lose most of your property and possessions.

While it is possible that you may lose some of your property if you file Chapter 7 bankruptcy, a large number of people who file never lose any of their property. This is known as a no-asset case.

When you file Chapter 13 bankruptcy, your debts are reorganized and a payment plan is established. Individuals who file Chapter 13 bankruptcy do not lose any assets.

Questions? Contact Us Today.

If you have questions about bankruptcy or wish to schedule a meeting with a bankruptcy attorney in Baton Rouge, please call 225-250-1161.

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