When it comes to bankruptcy, confusion abounds. If you file for bankruptcy are you just out of luck? Will it ruin your life? Is your plan for your future now out of the question? Nearly everyone has heard something about bankruptcy that is an exaggeration; oftentimes what they’ve heard is flat out untrue. Here are five facts about bankruptcy that will give you a better idea about what it actually is.
Bankruptcy won’t necessarily ruin your credit. This is probably the most common myth about bankruptcy that’s floating around out there. The fact is that having bankruptcy on your credit report won’t necessarily keep you from being able to buy a car or home for yourself. In fact, it’s not uncommon for people to report an increase in credit score because their credit truly is improved in just a matter of months.
Bankruptcy won’t cause you to lose everything. Contact us with the specifics of your particular scenario to be sure, but know that most people who have filed for bankruptcy don’t lose their possessions. It depends on the state you live in and what you own, but a number of your belongings can be protected under certain exemptions if applicable to your situation.
One in every seventy homes in the United States has filed for bankruptcy. If you’re considering filing for bankruptcy it may seem like you’re all alone, but the fact is that millions of Americans have gone through the same thing as you. Sometimes this fact alone is all it takes to make you feel a little better about your situation. Knowing that someone before you has been where you are can make all the difference when you see that they have filed for bankruptcy and come out the other side just fine.
No one is immune to filing for bankruptcy. Whether you’ve completed college or have no degree at all, living your life during a dip in the economy can be a hard thing to navigate. Filing for bankruptcy is done more often by those with no college degree, but it’s not uncommon even for those with bachelor’s and master’s degrees.
Your husband or wife can file bankruptcy as an individual or you can file as a couple. If only one spouse has debt, it may be possible for that person to file an individual bankruptcy petition. In some cases, filing bankruptcy jointly will safeguard the most property while settling the most debt, but it’s a good idea to speak with a bankruptcy attorney to see which option will be the most helpful for your situation.
We hope we’ve put your mind more at ease when it comes to what bankruptcy actually is. Bankruptcy is something to take very seriously, but with a little help from the right lawyer, you’ll find that it’s not as difficult as you may have first thought. If you have questions about what your options are, how bankruptcy will affect you, or if you just need some more detailed information, C Rainford Law Firm is here to help. Contact us today!