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Common Bankruptcy Myths

The idea of filing for bankruptcy is often met with numerous myths and misconceptions. It’s easy for you to get discouraged when making this decision, although it may be a necessary one. As such, we want to debunk some of the common myths and misconceptions about filing bankruptcy.

Myth 1: Filing Bankruptcy Means You Messed Up

There are a lot of people who find their way into debt one way or another. Remember, though, bankruptcy is an option because there are plenty of uncontrollable situations that can put you in a difficult position. Whether you lose a job, encounter medical debt, or have other unforeseen payments, bankruptcy can be beneficial in getting your life back under control.

Myth 2: All Property is Subject to Forfeiture

Bankruptcy does not force you to lose all of your property. Some assets are exempt, and you can protect some of your property. It’s best to work with an attorney who knows the state laws to determine which property you can protect when filing bankruptcy.

Myth 3: All Debts Will Be Cleared

Bankruptcy cannot always clear all debts that you have. Some of the things you cannot discharge include past due child support or alimony, student loans, and recent income taxes. It’s important to make sure you know which items cannot be discharged and which ones can be cleared when filing bankruptcy.

Myth 4: My Credit Will Never Recover

While bankruptcy can impact your credit score, it typically only stays on your record for a number of years. Even then, you can still increase your credit score in the first few years following the discharge. You’ll have the mark on your credit report, but you can increase your range in a timely manner.

At White Law PLLC, we work hard to help you understand your rights through either Chapter 7 or Chapter 13 bankruptcy. You shouldn’t be worried about a stigma associated with filing bankruptcy when your livelihood depends on it. Our Okemos bankruptcy lawyers are ready to be in your corner, guiding you to the option that best suits your need.

Call our firm at (517) 316-1195 today. We’re here for you.

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