Busting Bankruptcy Myths
October 21, 2015
When people hear the word bankruptcy, it elicits many different feelings. You may feel that bankruptcy is the end of the line, or that it reflects negatively on you and your ability to manage your money.
The truth is, bankruptcy is perfectly viable option for getting back on track with your finances, and there are many different reasons that people choose this course of action.
Here a few other bankruptcy myths that we can dispel.
- Filing for bankruptcy means you aren’t capable of handling your finances. This isn’t always the case. While some people who file bankruptcy may have made some money mistakes, many have simply run into serious financial hardships such as job loss or a hospitalization that lead to accruing unmanageable medical bills.
- You’ll be free of debt after you file. Bankruptcy can’t eliminate legal orders to pay child support or alimony. Federal student loans, tax debts, and court ordered repayments or fines accrued for committing a crime also won’t be discharged.
- Bankruptcy kills your credit. It might not happen immediately, but people who file for bankruptcy can absolutely go on to rebuild their credit. They’re able to repurchase homes and rebuilt their financial lives. In fact, it’s sometimes even recommended that you get a secured, low-interest credit card after coming out of bankruptcy, so you can start making repayments on time and building back a good financial standing.
Don’t let falsehoods prevent you from making a fresh start. Call the law office of George R. Belch for a free initial consultation to learn more about your bankruptcy options. We’re devoted to helping people find financial solutions and are happy to help guide you through tough financial times.