When you think about filing for bankruptcy, it can be stressful. No one wants to deal with all the stress that goes along with figure out your finances and repaying creditors. Sometimes you fight tooth and nail to think of other solutions that will rectify the situation, but to no avail realize bankruptcy might be your only option. While bankruptcy can and has been beneficial to those who’ve applied and won, if you’re unaware of what it is, chances are you will shy away from it. To top it all off searching the internet will only result in you finding certain myths about bankruptcy Marietta area. Below are the three major misconceptions about bankruptcy.
I will Lose My Assets
Most people shy away from filing bankruptcy Marietta area because they’re afraid they will lose their assets such as their home and car. Despite what rumors state there are both state and federal laws set in place that will protect your property from being liquidated. They can protect homes and cars depending on the type of bankruptcy you file as well as how much debt you are in. Every state has laws in which exempt certain assets from being liquidated. Your bankruptcy attorney will help you in deciding which laws will apply to you and your assets. Should you have to liquidate your assets, it is probably due to neglect from repaying your Chapter 13 settlement to your creditors. Ask your attorney about the safe guards set in place for your assets before completely ruling it out altogether.
I will Have Horrible Credit
Another myth you may have heard about bankruptcy Marietta area is that your credit will be seriously damaged once you file for bankruptcy. While it is true that a bankruptcy will remain on your credit report for seven to ten years, this does not mean that your credit is damage. In actuality, most of the negative showing on your credit report will be from things that were present prior to your filing. Things such as delinquent accounts and negative history are the most damaging things to your credit report. Bankruptcy actually renews everything, your accounts won’t show delinquent and you can start fresh. Many have found that after having filed they were much better off credit wise.
Everyone Will Know I am Broke
Many people who file bankruptcy Marietta area feel that once they file their friends, neighbors, family members and co-workers will be made aware of their status. No one will find out that you have filed unless you disclose that information to them. While bankruptcy is public record, that is only as it pertains to use in the courts and other legal purposes. There are laws in place to protect your job or potential employment opportunities. Should your employer decide to fire you or not hire you due to a bankruptcy status you have grounds for a law suit. Having this major myth off the table is a sigh of relief for many. While everyone is going through financial hardships, no one ever wants the possibility that someone may find out just how hard times are for them.