5 Common Bankruptcy Myths: Things To Consider When Filing For Bankruptcy

Posted by atsakala on January 12, 2010 · Leave a Comment

Misconceptions about bankruptcy and what it means to file are prevalent. What I’d like to do is discuss 5 of the most common misconceptions people have about the process.

I’d like to address the top 5 most talked about myths when it comes to your bankruptcy filing.

1. If I file for bankruptcy, everyone is going to know about it. Most often the only people that will know about it are the ones you decide to tell and your creditors. Even though bankruptcy is a public proceeding, there are so many people and companies that file for bankruptcy, unless you are prominent, no one will run a press release about it.

2. I’m going to lose all that I own. Unfortunately, this is too often the showstopper for the people bankruptcy could help the most. Each state has it’s own laws regarding bankruptcy and your rights, but all of them will protect certain assets of yours. Things like you house, clothes, retirement savings, etc. are protected. You can even keep your mortgage and car loan active if you can make the necessary payments.

3. My credit will be destroyed forever and I’ll never get it back. Not so. You will be offered credit again, albeit at higher interest rates. Large purchases should be made prior to bankruptcy due to the higher interest rates. Getting loans for things like a car or house may prove more difficult. However, you will be able to get credit again.

4. Filing for bankruptcy is going to be a long and arduous journey. Not so. Bankruptcy lawyers in Michigan can help with your filing and make the process easier for you to go through.

5. Filing for bankruptcy has a bad stigma attached to it and I don’t want to be a deadbeat. The majority of bankruptcies are filed because people have come upon hard times. They got sick, divorced, or laid off. Bills piled up and there was little they could do to keep up.

Filing for bankruptcy isn’t a process you should take lightly. It is a good idea to consult with bankruptcy lawyers in Michigan to make sure you are handling all aspects of the process correctly.

When you are facing the prospect of filing for bankruptcy the next step is to connect with bankruptcy lawyers in michigan. Ardelean & Dunne are talented bankruptcy lawyers in michigan. Ardelean & Dunne will help to file your bankruptcy issue and get you on the right track again.