Common Myths About Bankruptcy
The term “bankruptcy” brings a sense of anxiety for anyone who is or has previously experienced debt problems. Often thought to be an act of desperation for the fiscally irresponsible, the truth is that bankruptcy was created to work for people, not against them. In fact, the laws are designed in such a way to help hard working people experiencing unavoidable tough times get back on solid footing and regain control over their futures. So why the negative connotation? It’s simple: people often believe some of the common myths about bankruptcy.
Common Myths About Bankruptcy
Bankruptcy is one of those processes people simply don’t know much about. There are a few common myths about the California bankruptcy process that deter people from seeking help, such as:
- I will lose all my property and assets — FALSE. California has very generous exemption laws that protect your assets. For the vast majority of my clients, I am able to protect all of their assets. Always consult your Sacramento bankruptcy attorney about how to exempt your property when considering bankruptcy.
- Bankruptcy will negatively impact my family– FALSE. Filing for bankruptcy is likely to do the opposite for your family if you are drowning in debt. Rather than living on the edge of foreclosure, eviction, or the inability to put food on the table, filing for bankruptcy can help you resolve debt and regain your financial footing.
- I will never be able to get credit again– FALSE. Not only will filing for bankruptcy allow you to resolve your current debt obligations, it provides you with a clean slate to rebuild a better and stronger credit profile in the future. Although you will need to be more methodical and careful with your future credit use, there are several smart paths to obtaining future credit that can boost your credit profile in the long run.
- I will lose my job or be denied employment– FALSE. First, the chances that a current employer finds out about your filing are small, unless you have some sort of garnishment order against you already. Second, there are laws that prohibit employers from discriminating against you based on a bankruptcy filing.
Categorized in: Bankruptcy