Myths and Facts of Personal Bankruptcy  

The decision to file personal bankruptcy rarely occurs in a vacuum. There are unavoidable situations and circumstances which usually accumulate until financial insolvency results. For most folks, this situation can be very difficult to handle.

Bankruptcy usually comes about from not only unplanned expenses and an unmanageable budget, but unforeseen expenses, such as losses arising from natural disasters and medical emergencies. Bankruptcy usually occurs when there is a large amount of debt, sudden and unexpected unemployment, illness, or divorce.

Most people have heard a lot of conflicting information about personal bankruptcy, so let's take a look at some of the myths and facts surrounding bankruptcy here in North Carolina.

One myth (one that your creditors would like that you believe) is that you cannot file for personal bankruptcy. This is certainly a misconception and not true. According to changes made in 2005 by the U.S. Congress, any debtor is allowed to file for personal bankruptcy or Chapter 13 Relief.

Another of the myths is that it is embarrassing filing for personal bankruptcy. Filing for bankruptcy is not as embarrassing as when creditors start to hound you, friends, or family. Constant calls from creditors are causes for stress and trauma. 

Filing for Bankruptcy or Debt Relief can end the stress.

Filing for bankruptcy allows you to start over with your financial growth and progress, and you should not look at it as a sign of failure or embarrassment.  Many famous people have filed bankruptcy and recovered, including Henry Ford and Walt Disney!

A third myth is that your credit score will always be bad. True, personal bankruptcy proceedings go on record in your credit report. When it is completed and discharged, that is also recorded, thus wiping out your previous negative credit history and giving you the chance to build a positive credit history without all the old “baggage”.

Yet another myth is that a person can file for bankruptcy only once in a lifetime. A person who has filed for a Chapter 7 bankruptcy cannot file for a similar bankruptcy until a period of eight years passes. However, you are allowed to file for a different kind of bankruptcy, such as a Chapter 13 Debt Relief.

That personal bankruptcy means you lose everything you have, is again a mistaken, yet widely held, concept. Bankruptcy laws are designed so that a debtor is able to settle all debts without losing any of their assets in most cases. This information as it applies to you, can be provided by a certified and licensed bankruptcy attorney.

Filing for personal bankruptcy can be a difficult and tiring process and with the changes in law it is very intimidating as well. The fact of the matter is that anyone can file for personal bankruptcy. Of course, laws do get quite involved, and you could certainly get the help of a qualified bankruptcy attorney to make things easier and your filing more accurate and reliable.

The decision to file for bankruptcy is never an easy one, and it is even more difficult if you don't know the facts.

If you're considering bankruptcy as an option, please visit our web site at http://www.debtdoctor.net then call our office to schedule a free consultation today.   

A Federal and State Approved Agency providing DEBT RELIEF under Federal Bankruptcy Law for over 30 years!  

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