You already know that not everything you hear about any particular subject is true. As people discuss issues that affect their lives, they may embellish the truth, or they may simply have a poor understanding of the topic at hand. Bankruptcy is one subject around which a lot of myth has accumulated over the years. Unfortunately, many of these myths lead those struggling with debt here in Michigan to make poor financial decisions.
This blog post will debunk several bankruptcy myths so that those in desperate need of debt relief can make financial decisions based on fact. For additional guidance on how to make informed decisions about bankruptcy, it is wise to discuss your situation with a legal representative.
Bankruptcy eliminates all debt
Some financial obligations cannot be addressed through bankruptcy. Examples include child support obligations and student loans.
Repayment is always better than bankruptcy
In theory, this seems like sound advice. Unfortunately, it is not an option everyone can afford. When your debts exceed your ability to pay now and in the foreseeable future, bankruptcy might be the best choice.
With bankruptcy, you risk total loss
In most bankruptcy scenarios, you can keep some of your personal possessions and assets. This is especially true with Chapter 13 filings, which allow you to keep your property because you are entering into a repayment agreement.
As you can see, bankruptcy does not mean you have failed as an adult or that it will actually leave you worse off than you were before. In truth, filing for bankruptcy can provide you with a fresh start and a wonderful opportunity to improve your financial situation in the long-term.