Deciding to file for bankruptcy can be a dilemma for many people. And to make the experience worse, people often encounter common myths about filing Chapter 7 bankruptcy that simply aren't true:
Myth #1: You Will Lose Everything
This couldn’t be further from the truth. The no-asset rule states that the debtor won’t have to give up any of their possessions as long as the value or equity in their property falls below the allowable exemptions. Exemptions allow the person to retain the primary assets they need for day-to-day life and to restart their finances after their debts are discharged.
Myth #2: Filing for Bankruptcy Means You’re a Failure
No, you don’t have to think that if you are filing for bankruptcy it means you have some character flaw. It is a financial remedy that is designed to account for unforeseen events in your life. These conditions are unpredictable, and hence no one is to blame. You will find it shocking that more than half of the bankruptcy cases in the United States are due to overdue medical bills.
Myth #3: Filing Bankruptcy Ruins Your Financial Future
Although Chapter 7 bankruptcy will remain on your credit report for 10 years, this does not mean in the slightest that you will not be able to obtain new debts during this period We offer a free service to our bankruptcy clients called “720 Credit Rebuild Program.” We help you rebuild your credit to a high score after you have filed. If you follow our steps, we can return you to a sound credit profile within a year or two.