5 most common bankruptcy myths

 

Financial struggles have hit an all-time high with many families scrambling to pay their bills each month and living paycheck to paycheck. The U.S. total consumer debt is at a staggering $11.4 trillion. With more than 160 million Americans owning credit cards, bankruptcy has become the best option for some families. There are many misconceptions about bankruptcy. The Carlson Law Firm is here to debunk some of these common myths about what filing really means for you.

Myth #1: If I file bankruptcy, I will lose my house and my car.

If you file bankruptcy, you will not lose your house or your car. You are entitled to your home and one vehicle per driver’s license in your household as long as you are paying on it. If you are behind on your payments, you have the option of filing a chapter 13 bankruptcy to save personal properties.

Myth #2: I won’t be able to rebuild my credit for 7-10 years.

There is no hold on building your credit. Filers are able to re-establish their credit immediately after the bankruptcy process is finished.

Myth #3: Filing for bankruptcy will make me a bad person.

Filing for bankruptcy will not hurt anyone else’s ability to file if they meet the requirements. Anyone that is having creditor problems and qualify according to the median income is able to file for bankruptcy.

Myth #4: Bankruptcy will make my credit score worse.

Your credit score will hurt worse when you are in bad standing with your creditors. It will take longer to rebuild your credit as you attempt catch up on your bills. Your credit will build much faster if you file for bankruptcy and immediately re-establish credit.

Myth #5: If I file for bankruptcy, I will lose my security clearance.

Because filing allows you to rebuild your credit right away, your credit improves even faster. This shows the responsibility of taking care of your debt in a certain way. Having bad credit from not being able to pay your bills, however, will keep you from obtaining certain jobs or positions and the security clearances they require.

What we can do for you
If you are considering filing for bankruptcy, The Carlson Law Firm can help. We have a team of professionals who are dedicated to your cause. Call us today for your free consultation and we can have to back on the right path to financial success.

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