The Myths of Bankruptcy

Bankruptcy Help in Silver Spring, Frederick, & Hagerstown

In Silver Spring, Maryland, and all throughout the country, many people are turned away from the idea of bankruptcy due to the negative reputation that it gained in the past. Many people fail to understand the many benefits of bankruptcy and the financial freedom that families experience after filing for bankruptcy.

The following are several myths of bankruptcy described by a Silver Spring bankruptcy lawyer:

Myth #1: Only irresponsible people file for bankruptcy.

This statement is false. On a regular basis, there are individuals who are extremely responsible in all aspects of their life that file for bankruptcy. These individuals are often struck with an unexpected financial difficulty that they must face, such as an unexpected job loss, divorce, sudden illness, or a death of a family member. If you are one of the many responsible people in the country who is struggling with debt due to an uncontrollable circumstance, my firm can help.

Myth #2: I will never be able to buy a home after bankruptcy.

Once a person files for bankruptcy, he or she will be able to start fresh financially. Some credit card companies are willing to give small loans or secured credit cards that are backed by cash to help individuals rebuild credit over time so that they can eventually buy a home, vehicle, or make another large purchase.

Myth #3: I cannot rebuild my credit after bankruptcy.

As mentioned before, many credit card companies are very willing to give consumers a second chance to build their credit. As long as you continue to pay your bills and credit card on time, your credit will eventually continue to improve.

Myth #4: I will lose all of my possessions.

This is an untrue statement in many fashions. A person who files Chapter 7under the Bankruptcy Code will have to liquidate some possessions, but there are many possessions that are exempt. These exemptions vary depending upon the location in which you live and the amount and type of debt that you have. With Chapter 13bankruptcy, you can actually save your possessions from legal actions such as foreclosureor repossession.

Myth #5: Bankruptcy is nearly impossible to qualify for.

This statement could not be farther from the truth. In fact, the government has made it easier for individuals to qualify for Chapter 7 bankruptcy. If a person does not qualify, they almost automatically qualify for Chapter 13 under the Bankruptcy Code.