Even if you have found yourself facing financial difficulties, you may be hesitant to file for bankruptcy. The truth is, many people are afraid of using their legal right go through this process because of things they have heard. When it comes to difficult times, we trust the people around us most, but there is a lot of misinformation about bankruptcy out there. Here are five common myths you have probably heard.
1. You Will Lose Everything
When you call lawyers in Jacksonville FL, you will learn there are different types of bankruptcy. The type you file will impact whether you lose assets and how much. Either way, you will not lose everything.
2. It Eliminates All Debts
Again, this comes down to which chapter you file. With Chapter 7, for example, the process will eliminate most unsecured debts, but it is likely you may still have other debts that remain like student loans.
3. Paying Off All Debts Is Always Best
While paying everything off might seem ideal, it may not be the best solution for you. If you are spending half your income on repaying debt and you do not see it ending anytime soon, bankruptcy might be better.
4. Being Bankrupt Is Personal Failure
Going bankrupt does not mean you have personally failed. In fact, most bankruptcies in the United States result from excessive medical bills. Indeed, there are many reasons why people lose track of debt payments.
5. It Will Ruin Your Financial Future
Contrary to popular belief, bankruptcy is not the end of your financial world. Of course, it will put a dent on your credit report for the next seven to 10 years, but there are still many places you can find that will be willing to work with you despite that history. Furthermore, it will be totally clear in the long-term.
If you have been considering bankruptcy, do not let common fears like the ones on this list stop you. Sometimes, it can be the first step to financial relief. New beginnings can be good.