There are many people who avoid filing for bankruptcy. Some of the main reasons behind this are the longstanding myths about it. Here are some of the common myths about bankruptcy given below. Let’s check them out:
Myth I: Not everyone is eligible to file for insolvency.
This is just a longstanding misconception, in reality anyone can file for bankruptcy. However, the main question is under which chapter do you qualify? According to new laws, if your household income is less than the median of your state or you pass ‘Means Test’, then you are eligible to file for quicker and simpler Chapter 7 bankruptcy. Otherwise, you have one more option and that is to file for Chapter 13 bankruptcy. Though it will take time, say 3 to 5 years to get relief from your debts, you will surely get it. However, you should make sure to hire a good and experienced bankruptcy attorney before filing for insolvency. Click here to know more.
Myth II: You will never be able to get credit once you file for insolvency.
This is not true. There are two different aspects related to the consequences of filing a bankruptcy petition. The first one is the time it takes to rebuild your credit rating, and the second one is the time insolvency remains there in your credit report. Moreover, there is no law that prohibits an individual from obtaining credit after insolvency. In fact, bankruptcy provides an opportunity to start your life once again. This is one of the main reasons why it is also called an economic reset button.
Myth III: You will lose all your assets after filing for bankruptcy.
This is one of the most common misconceptions when it comes to insolvency. According to Poor Debtors Law, even if your have to pay debts, you are allowed to pay your debts in installments and still keep your bare necessities.
Myth IV: Bankruptcy is a black mark on your reputation.
When it comes to filing insolvency, most people forget that it is a debt relief option and not a punishment. Moreover, insolvency laws are designed for the economic rebirth of a bankrupt individual. So, it is hardly a black mark.
Myth V: Everyone will come to know that you have filed for insolvency.
Until and unless you are a public figure or someone specifically wants to know about your financial conditions, no one will come to know that you have filed for insolvency except you, your creditor and some handful of people.
After reading this article you must have come to know about the misconceptions related to bankruptcy. So, if you are unable to repay your creditors, hire a bankruptcy attorney (Kennesaw, GA has many of them) and file an insolvency petition right now. Visit the website for more information.