Common Misconceptions About Bankruptcy

For people who are dealing with financial troubles, bankruptcy might be an option. If you are having difficulty determining whether or not bankruptcy is the right debt relief option for you, don’t wait to talk to a lawyer who can give you legal advice and guidance. Making the decision to move forward with bankruptcy demands a lot of time and research. An experienced and highly qualified bankruptcy lawyer like one from Carolyn Secor, P.A. can give you clarity about your situation and see if bankruptcy would benefit you, helping you attain financial freedom so that you can live a life without crippling debt. 

Bankruptcy Wipes Out All Debt

Tax debt, student loans and child support payments are not eligible to be discharged by bankruptcy. These are payments that you must pay yourself, and there is no way to get out of them. Before you begin the bankruptcy process, first determine whether the type of debt that you have can be discharged through bankruptcy. 

Bankruptcy Is a Result of Being Financially Irresponsible

In addition to the heavy financial impact that filing for bankruptcy can have, many people are concerned about how bankruptcy will make them feel or look to others. While it is a deeply personal decision, bankruptcy carries a stigma that those who file for bankruptcy have brought it on themselves. This is a common but damaging misconception. In many cases, bankruptcy is out of a person’s control, such as medical debt caused by a sudden accident. The reasons that people file for bankruptcy vary widely and cover a wide range of circumstances. 

There Is No Way to Get a Good Credit Score

It is possible to build up your credit again after filing for bankruptcy. In fact, for some people it may be the best path to achieve financial freedom. Bankruptcy does lower your credit score dramatically, but right after your debts are discharged you can begin building up your score to a healthy range. Implementing positive spending habits like paying credit card or loan payments on time and utilizing less than 30% of your credit card limit are just a few of the ways that you can improve your score. 

Do not take the decision to file for bankruptcy lightly. It is a decision that demands a great deal of thought and consideration. In addition to finding out if you qualify for bankruptcy, you need to see it offers you long-term benefits. To learn more, consult with a trusted bankruptcy lawyer so that you can get the legal and financial advice that you need.