5 Bankruptcy Myths and Facts

Bankruptcy comes with a negative stigma. While it is an unfortunate situation for any individual or business, its negativity is most often due to myths surrounding bankruptcy, making consumers less likely to file for bankruptcy – even when they clearly should.

If you are struggling to make your monthly payments or even live paycheck to paycheck, bankruptcy could be the financial solution you need. If you are holding back, make sure it is not because one of these common myths.

bankruptcy myths and facts

Bankruptcy is Your Fault

You are not the problem. While you may have signed up for the credit cards and used them, credit card companies charge outrageous fees, interest rates, and purposely try to squeeze every penny from a consumer. By doing so, they put consumers into sticky financial situations that they cannot get themselves out of—often leaving them with no other choice but to file for bankruptcy.

Bankruptcy Will Ruin Your Credit Forever

Most people that file bankruptcy have restored their credit in just three years after filing bankruptcy. Most of them will have better credit scores than they ever did before and bankruptcy does not lower a person’s chances to get a low interest rate or even apply for a mortgage. There are plenty of consumers that qualify for new home loans with a bankruptcy still on their credit report.

Bankruptcy Means You Need to Liquidate Your Assets

You do not lose all of your stuff. If you file for Chapter 7 bankruptcy, you can still keep your home and even your car in some cases. Bankruptcy laws protect consumers and have exemptions for a reason: to keep creditors from repossessing your assets.

Married People Cannot File Solo

This is untrue. If one spouse has an outrageous amount of pre-marital debts, they are allowed to file for bankruptcy without filing a joint case. You can file alone regardless of your marital status, but the courts may want to see evidence of your spouse’s income to see why you cannot get out of debt alone.

Filing for Bankruptcy is Too Hard

While new laws make it harder to file, this doesn’t mean it is impossible. It is harder for consumers to file for Chapter 7 bankruptcy, but those that do not qualify often qualify for Chapter 13 bankruptcy and are able to get out from under their debts just fine.

Thinking About Filing for Bankruptcy? Contact Your Local Jacksonville Bankruptcy Attorneys

The team at Hardesty, Tyde, Green& Ashton is here to assist you with your bankruptcy case. Our Jacksonville bankruptcy attorneys will put those myths and worries to rest and can even tell you during a free consultation if your situation will qualify for bankruptcy.

Call us today at 904-398-2212 to schedule your initial, free consultation or or visit us in our Jacksonville, Florida office.