Misconceptions about bankruptcy and what it means to file are prevalent. Many times this can prevent people from filing for personal bankruptcy, even when it might benefit them to do so. Here are 5 of the most common myths about bankruptcy.
1. If I file for bankruptcy, everyone is going to know about it. Most often the only people that will know about it are the ones you decide to tell and your creditors. Even though bankruptcy is a public proceeding, there are so many people and companies that file for bankruptcy, unless you are prominent, no one will run a press release about it.
2. Everything I have will be gone. This is often the deal breaker for people who could really benefit from filing from actually doing it. Every state has exemptions, although they vary from state to state, that protect certain assets, such as your house, clothes, retirement savings, and your car (up to a certain value). If you have a mortgage or a car loan, you can keep those as long as you keep making the payments.
3. You will never be able to get credit again. This isn’t the case. You will be able to get credit again. Although interest rates will be higher than before. However, if you are going to make a larger purchase, such as a house or car, it might be a good idea to do this before you file. Loans for those items will be tougher to get and will include higher interest rates.
4. Filing for bankruptcy is going to be a long and arduous journey. Not so. Bankruptcy lawyers in Michigan can help with your filing and make the process easier for you to go through.
5. I must be a deadbeat if I have to file for bankruptcy. The truth is that lots of people file for bankruptcy and most of the time it’s because of a big, life-changing event. Things like divorce, losing their job, getting sick are often to blame. Bills stack up and they get further and further behind.
Filing for bankruptcy isn’t a process you should take lightly. It is a good idea to consult with bankruptcy lawyers in Michigan to make sure you are handling all aspects of the process correctly.
When you are facing the prospect of filing for bankruptcy a good idea is to connect with bankruptcy lawyers in michigan. Ardelean & Dunne are experienced bankruptcy lawyers in michigan. They can help to resolve your bankruptcy issue and get you on the right track again.
