This article will introduce you to the bankruptcy myths that have been circulating for some time among the range of people who are in deep debt without seeing any other way out except filing for bankruptcy. These myths will be discussed in order to show you what is right and wrong about this process and what exactly this one incurs, but as always, consult with a good to get all your questions answered before you make your final decision:
Myth #1. It is always good to leave out some of your debts
This is completely wrong. You are required by law to include in the process al the acquired debts regardless of what nature they are. You need to reveal everything in relation to your finances, assets, creditors and income.
Myth #2. Bankruptcy is an instrument that will help you eliminate all the debts.
While it is true that many debts can be discharged through this process, there are other many debts that are not liable for discharging among which we count: child support, alimony, student loans, criminal charges, etc.
Myth #3. Bankruptcy is a tool for poor people
It is again wrong to assume this. This process is available to anyone (individual and company alike) who faces hardships with handling their massive debts. When it has been proven that any other possible solution has been tried out and didn’t work, everyone is entitled to file for bankruptcy.
Myth #4. It doesn’t prevent you from applying for other loans in the future
It is true that no one can stop you from applying for another loan once you have completed the process of bankruptcy. But this doesn’t mean that you will actually get the desired loan. Your financial management credibility is lost for at least 7 years once you have the bankruptcy ‘black mark’ staining your credit report. So, the chances for getting a loan in the near future are very weak.