5 Bankruptcy Myths

Posted on: December 9, 2014

Bankruptcy Myths Proven Wrong

Being overwhelmed with debt and unable to pay your bills can be a frustrating experience. While bankruptcy can be a viable option for many families who struggle with debt, many people still believe outdated notions about how negative bankruptcy can be. Here are 5 bankruptcy notions that you may have heard of, and why they're nothing more than a myth.

  1. Filing For Bankruptcy Is Very Difficult

    Many people believe that filing for bankruptcy is very challenging, if not impossible to do. The truth is, most forms of bankruptcy are very easy to file for. This is especially true if you have the assistance of a California bankruptcy attorney on your side.

  2. Your Credit Will Be Ruined If You File For Bankruptcy

    While bankruptcy does affect your credit at first, it doesn't destroy your credit for the rest of your life. In fact, having your debts cleared and getting control back over your finances will actually make it easier for you to build your credit back up after bankruptcy through the use of secured credit cards and making timely payments on the debts that remain after the bankruptcy.

  3. You Will Lose Everything You Own

    It is common misconception that when you file bankruptcy, all your possessions are liquidated, including your home and your car. This is not necessarily true. In cases where individuals file for a Chapter 13 bankruptcy, none of their possessions are liquidated. In a Chapter 7 bankruptcy, there are many exemptions that will allow you to keep most, if not all, of your necessities. A skilled bankruptcy lawyer in Corona can help you list your assets properly on your bankruptcy forms in order to keep them protected.

  4. You and Your Spouse Have to File Bankruptcy Together

    If you are married, you don't necessarily have to file bankruptcy with your spouse. This is not true. If the majority of debts are in one person's name, it is much more beneficial for only that person to file for bankruptcy. However, any shared debts will remain after the bankruptcy is complete.

  5. Your Bankruptcy is Public Information

    Many people avoid filing for bankruptcy because they believe everyone will know they have done so. However, unless it is likely that your bankruptcy case will be picked up by the media (i.e. if you own a well known business or are a person of notoriety), no one will know about your bankruptcy, other than your creditors and anyone else you choose to inform about you situation.

In today's precarious economy, more and more individuals and families are becoming overwhelmed with debt. To find out if bankruptcy could be a good solution for you, contact a skilled Corona bankruptcy attorney as soon as possible. At Farhat Law Firm, APC, we have the skills and resources to guide you through the process of bankruptcy and help you get the clean financial slate you need. Call today for a consultation at (951) 808-0529.