Although the economy has improved considerably in the years since the housing collapse, the reality is that many Americans are still struggling financially. It’s not easy to meet the challenges of paying bills, especially with the costs of homeownership (or renting) on the rise. Sometimes, it becomes necessary to seek assistance with financial difficulties and explore the possibility of filing for bankruptcy.

Unfortunately, there are a lot of misconceptions about what actually happens when a person files bankruptcy. That’s because bankruptcy has long had a stigma attached to it: many people automatically assume that filing for bankruptcy has only negative consequences. However, the truth is that bankruptcy, whether it’s Chapter 7 or Chapter 13, can often help a person get the fresh start they need as they attempt to get out from underneath a mountain of debt. Still, the idea that bankruptcy is a bad option persists.

Here are a couple of myths about bankruptcy that desperately need to be dispelled:

1. A person who files for bankruptcy has failed. This could not be further from the truth. Filing for bankruptcy is not a personal failing. In fact, a person who makes the tough decision to file bankruptcy is actually taking action to improve their situation going forward. Moreover, many bankruptcies are the result of debts that were simply not the debtor’s fault. Perhaps you were seriously injured in an accident and struggled with medical bills. According to financial experts, more than half of all bankruptcies in the US stem from medical debt. You do not deserve to be punished simply for getting sick or injured. And you certainly should not feel bad about seeking assistance as you work to get back on your feet.
2. Bankruptcy will close doors for you in the future. Again, this bankruptcy myth is simply not true. Depending on the precise circumstances, filing for bankruptcy will give you a chance to keep your important assets as you attempt to clear your debts and move forward with your life. Beyond that, many people who file for bankruptcy actually find that they have more options in the future because they are no longer saddled with crippling debts.

 

If you are struggling with debt, you should speak with a qualified bankruptcy and debt management lawyer immediately. Joel R. Spivack, Esq., is an experienced debt relief and bankruptcy attorney who can help you explore your best options. Contact Mr. Spivack today to schedule a free consultation.