Bankruptcy in Orlando, like any other place, is a formal procedure that can help people who are struggling with debt. Many false beliefs about bankruptcy still exist, which keeps people from getting this financial lifesaver when they need it the most.
Let us bust some of the most common myths about bankruptcy to help you understand the process and make smart choices about your future finances.
Myth 1 – bankruptcy is a sign of failure.
A lot of people see bankruptcy as a sign of weakness and a stain on their financial history. On the contrary, bankruptcy is a formal tool meant to help people start over.
Having trouble with money can happen for many reasons, such as a medical emergency, losing your job, or an unexpected business venture. Filing for bankruptcy shows that you are ready to take responsibility for your position and figure out how to get your finances back on track Magazine Papers.
Myth 2 – bankruptcy means losing everything you own.
A common misunderstanding is that when you file for bankruptcy, you lose everything you own. This is not entirely true. You can keep important things like your car, a decent amount of home value, and family goods after filing for bankruptcy.
A bankruptcy lawyer with a lot of experience can tell you about the provisions that apply to your case and help you keep your assets safe during the process.
Myth 3 – bankruptcy automatically wipes out all your debts.
Most uninsured debts, like credit card amounts and hospital bills, can be erased by bankruptcy, but some responsibilities must still be met.
Some bills that usually stay after filing for bankruptcy are child support, spousal support, and most tax debts. When thinking about bankruptcy, it is important to know which bills can be forgiven and which ones can not.
Myth 4 – bankruptcy will ruin your credit score forever.
Filing for bankruptcy will definitely hurt your credit score. But the impact’s strength and length of time are often exaggerated. Chapter 13 bankruptcy only shows up on your credit report for seven years, while Chapter 7 bankruptcy shows up for ten years.
However, your credit score can start to go up pretty quickly after you file, especially if you are careful with your money and pay your bills on time.
Myth 5 – filing for bankruptcy is a public process.
People can see who has filed for bankruptcy. But this does not mean that there is a lot of press. The public can usually only see basic information like the name of the person who filed the case, the type of case, and the date it was filed. There is no public statement or widespread word that bankruptcy has been filed.
Myth 6 – only desperate people file for bankruptcy.
Contrary to what most people think, bankruptcy is not only for people who are in terrible financial situations. A lot of people who have too much debt to handle choose bankruptcy to get rid of high-interest debt, consolidate their payments, or start over.
It is important to remember that getting professional help with your money can help you figure out if bankruptcy is a good choice for you.
Myth 7 – you can hide assets to avoid losing them when you file for bankruptcy.
Trying to hide assets from the bankruptcy trustee is a very bad thing to do and will have serious legal effects. Bankruptcy law says that creditors must correctly list all of their possessions.
Giving fake information or moving assets to avoid liquidation can lead to more charges and fines. During the bankruptcy process, it is important to be honest and open.
Talk to a lawyer today.
Filing for bankruptcy is an effective choice that can help people who are drowning in debt. When you know the truth about these common myths about bankruptcy, you can better understand what it means for you and make smart choices about your financial future.
To get through the process smoothly and figure out if bankruptcy is the right choice for your situation, you need to talk to a skilled bankruptcy lawyer.
