Most people who go bankrupt are hard-working individuals who honestly want nothing more than to be financially independent. They often feel like failures, and are too embarrassed to talk openly about bankruptcy. This leads to rumors and myths. If you are overwhelmed by debt, but are hesitant to hire a Bankruptcy attorney Lebanon, you should ignore the following three bankruptcy myths.
Myth #1: People who file for bankruptcy are lazy and irresponsible. Actually, over 90% of people who file for bankruptcy became unable to pay their bills due to illness, job loss, or divorce. These are not people who maxed out their credit cards on impulsive shopping sprees and then simply decided not to pay the balances. These are people who tried every other possible way of paying their debts, then turned to bankruptcy as a last resort.
Myth #2: Since the bankruptcy laws changed in 2005, it’s much harder to be granted a bankruptcy. It’s true that you must undergo a screening process before filing for bankruptcy. You will receive credit counseling, and your income will be scrutinized. However, this process is not designed to deny bankruptcies to people in dire financial straits. It simply confirms that bankruptcy, not debt consolidation, is the best solution for you. The filing process will go even more smoothly under the guidance of a Bankruptcy Attorney Lebanon.
Myth #3: Bankruptcy will severely damage your credit. The truth is that if you qualify for bankruptcy, your credit is already severely damaged. Once you’ve gone bankrupt, you have “nowhere to go but up.” You get a clean slate financially. Many people actually see their credit scores rise after filing for bankruptcy. Since their debts have been wiped out, their ratio of income to debt drastically improves. Even though a bankruptcy will show on your credit report for 7-10 years, you can qualify for normal interest rates in as little as 2 years.
Do not allow shaming tactics to deter you from filing for bankruptcy if you really need it. Most debtors who go bankrupt are honest people who have fallen on hard times. Neither should you be intimidated by the changes in the bankruptcy laws. Instead, set aside some of the money that you would normally pay to unsecured debts, and hire a Bankruptcy Attorney Lebanon. A qualified Pennsylvania bankruptcy attorney can help you gain financial relief and a more secure future.