Filing for bankruptcy is the legal act of giving up or relinquishing one’s property to a court to discharge debts and responsibilities. Some people are still afraid to talk to a lawyer about bankruptcy because they fear it will hurt their credit or want to avoid any shame they may face. Many will benefit from knowing about these misconceptions when discussing their legal matters with a bankruptcy lawyer. You only need one lawyer who will be able to help you with any questions or concerns you may have about your case.
1. Bankruptcy Is a Shameful Thing
You should not feel ashamed as it is a legal process, and those who file for bankruptcy must take the necessary steps to pay their debts with the stipulations outlined in the original contract.
2. You Will Lose All Your Assets and Possessions
When you file for bankruptcy, the court will take control of your assets, but this does not mean you will lose all of your possessions.
3. You Will Never Be Able to Get Credit Again if You File for Bankruptcy
Your credit score will go down, but this does not mean you should not file for bankruptcy. If your finances are unmanageable, filing for bankruptcy will help rid you of unnecessary debts you cannot pay.
4. You Have to Go to Court if You File for Bankruptcy
You may file for bankruptcy without going to court, and the court will allow you to do so. If you are unsure about filing, you can still work with your attorney to determine if filing for bankruptcy is the best move for you.
5. It Means That You Are Financially Irresponsible
If you have been negligent or made poor financial decisions, then it may be prudent that you file for bankruptcy to restructure and rebuild your finances. You should not feel ashamed in filing for bankruptcy, as it is necessary to move forward with your future.
6. You’ll Lose My Job
You will not be fired if you file for bankruptcy. No rule says you will lose your job if you file for bankruptcy. The court will take over your debts and assets, but this does not mean you cannot continue to work.
7. You Can Only File for Bankruptcy Once
The rules have changed, and you can file for bankruptcy more than once. This can help you rid yourself of unnecessary or unsecured debt that makes it difficult for you to rebuild your finances.
8. Bankruptcy is Too Complicated and Time-Consuming
The long period of the filing is to make sure that all of the information is correct and that your filing is complete and accurate. The court will contact you and ask you to clarify specific details if they feel that your bankruptcy filing may not be complete or accurate.
If you are unsure about what type of bankruptcy may be best for you, it is always wise to consult an experienced bankruptcy attorney. The legal process can seem very complicated, which is why you need help from a knowledgeable lawyer.