Dispelling Bankruptcy Myths And Misconceptions
You may have encountered a wealth of misinformation about bankruptcy. You might have heard horror stories from family or friends or read them online. However, much of what you see or hear is simply not true. At J. Robinson Law Firm, PLLC, in Shelbyville, Kentucky, attorney John Robinson works closely with clients to help them separate bankruptcy myth from fact.
Let’s examine some common misconceptions and reveal the truth behind them.
Myth 1: You Will Lose Your Job If You File For Bankruptcy.
Reality: Employers cannot fire you solely because you’ve filed for bankruptcy. In fact, the U.S. Bankruptcy Code prohibits employers from discriminating against employees who have filed for bankruptcy.
Myth 2: You Will Never Be Able To Own A Home After Bankruptcy.
Reality: While bankruptcy can temporarily affect your credit, many individuals can qualify for a mortgage within a few years after filing. With responsible financial management, homeownership remains an achievable goal post-bankruptcy.
Myth 3: You Will Never Qualify For Credit Again.
Reality: Many people are able to obtain credit shortly after bankruptcy. While interest rates may initially be higher, responsible use of credit can help rebuild your credit score over time.
Myth 4: You Will Have To Go Before A Judge In A Formal Proceeding.
Reality: Most bankruptcy filers never see a judge. In many cases, the only formal proceeding is a meeting with the trustee assigned to your case, known as the 341 meeting of creditors.
Myth 5: Bankruptcy Is Too Expensive Or Requires A Large Amount Of Money To Start The Case.
Reality: While there are costs associated with filing bankruptcy, many attorneys offer payment plans. The long-term financial benefits often outweigh the initial costs.
Myth 6: Your Bankruptcy Will Be Published In The Newspaper.
Reality: While bankruptcy filings are a matter of public record, they are rarely published in newspapers. Most people will not know about your bankruptcy unless you tell them.
Myth 7: Filing For Bankruptcy Means You’re A Failure.
Reality: Bankruptcy is a legal tool designed to help individuals and businesses overcome severe financial difficulties. Many successful people, including well-known entrepreneurs, have used bankruptcy as a stepping stone to financial recovery.
Facts About Filing Bankruptcy
After bankruptcy, you can rebuild your credit and work toward financial stability. Many people have been in your shoes, and filing for bankruptcy is not a reflection of your character or success. It simply means you’ve encountered financial challenges and are taking steps to start over.
Understand The Truth About Bankruptcy – Call Today
Don’t let myths prevent you from exploring your options. Contact J. Robinson Law Firm in Shelbyville at 502-805-9602 or by emailing us to schedule a consultation with attorney John Robinson. Get the facts about bankruptcy and learn how it might help your specific situation.
