Bankruptcy Myths
The main reason why so many people are hesitant to file for bankruptcy is because they are uncertain about how it will affect their future. Because there are so many myths surrounding the bankruptcy process and how a bankruptcy will affect a person’s life, it’s best to speak with an experienced bankruptcy attorney who can tell you which myths are true and which are false. Hopefully after you have sorted out the truth about bankruptcy, you can objectively determine whether or not filing for bankruptcy is the best decision for you.
Here are some of the top bankruptcy myths:
Myth #1: My credit will be permanently ruined.
FALSE. It is very possible for you to rebuild your credit, even with a bankruptcy on your credit history. Although you may not be able to get credit for the first couple of years following your bankruptcy, it won’t be long until you can start rebuilding your credit and a solid financial foundation.
Myth #2: I will lose all of my property and assets.
If you file for Chapter 13 bankruptcy, you will keep all of your assets. If you file for Chapter 7 bankruptcy, some of your assets may be liquidated in order to repay your creditors. That being said, it’s rare that you will lose your home or car—the two assets people are most afraid of losing. An experienced and skilled Los Angeles bankruptcy attorney like Joseph Diamond may be able to help you find a way to keep all of your assets.
Myth #3: Only losers and deadbeats file for bankruptcy.
ABSOLUTELY FALSE. Many good, honest, hard-working people have filed for bankruptcy. Just because you have fallen on hard times does not make you a loser or a deadbeat. There are a number of valid reasons as to why even the most responsible people fall behind on their payments and suddenly find themselves struggling with mounting debt. If you are facing overwhelming debt, you should not be ashamed or embarrassed, but rather take this opportunity to get a handle on your financial situation so you can finally move forward toward a debt-free future.
Myth #4: My friends, neighbors, and employer will judge me.
Whether or not your friends and neighbors judge you is out of your control. If they are your true friends hopefully they will not judge you, but rather support you and help you get through this difficult time. As for your employer, he or she cannot fire you, demote you, or take any other type of retaliatory action against you without violating wrongful termination laws.
Furthermore, if you are worried about people finding out that you filed for bankruptcy, you can rest easy knowing that the bankruptcy court will not contact anyone, including your employer. Unless your employer or someone else conducts a background check, there is no way for them to find out about your bankruptcy unless you tell them.
To learn more about the truth about bankruptcy, contact Los Angeles bankruptcy attorney Joseph Diamond today!
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