Filing for bankruptcy comes with a number of opinions from people around you. This is one of the reasons why no one wants to file it in the first place. While it tells a lot about your financial standing, it can also be the reason that it will improve in the future. There have been instances when people have successfully rebuilt their financial position. To do so, you need to get Help from a bankruptcy attorney, who has in-depth knowledge and unbeatable skills in this field.
Myths of Bankruptcy
If you tell your friends or relatives that you are filing for bankruptcy, they may have certain points of view about you. That’s why, it is important to learn about bankruptcy myths so that you can deal with them in a better way. Some of them are elaborated on below:
Bankrupt people are financially irresponsible
Many of us believe that people, who have filed for bankruptcy, are unable to manage their finances and are irresponsible ones. However, the fact is that certain conditions may be responsible for them to file for bankruptcy. For instance, losing a job, divorce and serious medical conditions can also result in bankruptcy.
All your debts will be discharged in bankruptcy
There are mainly two chapters in bankruptcy, Chapter 7 and Chapter 13. It will depend on the types of debts you have including secured and unsecured ones. It is important to understand which debts will be discharged as per the bankruptcy laws and your financial condition. A good bankruptcy lawyer will be able to educate you on this in a better manner.
Making purchases before filing for bankruptcy
It has been observed that people make huge purchases before they file for bankruptcy. In Chapter 7, most debts are relieved and discharged. People tend to take advantage of this situation and buy several items prior to filing for bankruptcy believing that they won’t have to pay anything. On the contrary, the court will review everything and consider this as bankruptcy fraud. It will affect your case in the worst manner.
No need to hire an attorney
Everyone thinks that filing for bankruptcy is as simple as submitting any form. However, it can be a complex procedure. That’s why, you must hire an attorney who specializes in this field. He not only makes you understand the procedure but also helps you get a fair deal.
Bankruptcy is just an opportunity to rebuild your financial condition.