Nobody wants to file for bankruptcy; unfortunately, it’s more common than you want it to be. A round of scary procedures later, it might seem like your reputation has taken an even bigger hit than before. To add to that, there’s a host of misconceptions that can cause some very unnecessary hair-pulling. You could have a Bankruptcy Lawyer walk you through the entire process. Alternatively, you could go through these top 10 myths about bankruptcy and save yourself a few precious premature gray hairs. Your call!
Bankruptcy stays on your credit report for around 7 to 10 years, but it doesn’t permanently terminate your credit score. You can start rebuilding your credit score once your bankruptcy is closed. As long as you don’t live like there’s no tomorrow and take heed of proper financial counseling, you can get yourself in order and resume building your credit score again.
It seems instinctively appropriate—why should anyone agree to lend you money when you’re officially bankrupt? While borrowing money can cause a few problems during bankruptcy, it’s not impossible. Moneylenders often understand where you’re coming from and are willing to listen to an honest statement to lend you some much-needed cash. Your interest rates might turn a little steeper, but it can be done. They may need a little more convincing than usual to know that the way you intend to use the borrowed money will reap promising results. This means that it will eventually improve your financial situation and make the lending profitable for them.
Don’t riffle through your marriage vows because your partner is struggling; legally speaking, bankruptcy isn’t a burden both of you have to share. It is not unusual for one of the spouses to have a significant amount of debt, and thus, in this case, the bankruptcy will fall only on one partner. If both of you took a loan jointly, of course, it’s a different matter.
Declaring yourself bankrupt to erase your debt is like using ice cubes to seal a leaking wall. Many file for bankruptcy, and thus, it doesn’t give a clean slate or fresh start. Bankruptcy can’t help you discharge every pending debt. Certain loans, including personal loans, utility bills, medical bills, and back rent can be removed only under exceptional circumstances.
On the flip side, don’t beat yourself up too hard or meekly accept insults thrown at you just because you filed bankruptcy; it’s not just about being irresponsible. The three major kinds of bankruptcy are filed due to divorce, severe illness, or unemployment. It’s as much a structural issue as it is a personal one- most of the time, you’re not the only one to blame.
Will your house be usurped? Will uniformed police officers take away everything you’ve built over the years? Rest assured, if you file for bankruptcy, your property will be managed for you, and you’ll rarely lose anything at all. Assets like your house, your vehicles, and your clothes are all covered.
On the other hand, clients sometimes file bankruptcy, thinking a lawyer will shield all their assets. This is an equally dangerous belief; you could lose some things if you can’t get your finances back up in time.
There are several rules in bankruptcy, and declaring it may come off as confusing and intimidating. However, a bankruptcy lawyer can help you with the complete flow of the process.
Hiring a bankruptcy lawyer can help you smooth the process out. Here’s how:
It’s natural to feel guarded and want to take care of bankruptcy all on your own. We recommend not yielding to these feelings. To deal with your situation best and move on to a better life, try to find a good bankruptcy lawyer.
Want to know where to start and how to obtain a favorable outcome? Try https://azbankruptcysolutions.com/mesa.
Arizona Bankruptcy and Debt Solutions
1013 S Stapley Dr
Mesa AZ 85204
Filing for bankruptcy isn’t the right solution for everyone. The determination of whether or not bankruptcy is an appropriate debt relief solution for your will be made based on a number of factors including the type and total level of your debt. Use this form to schedule an appointment with one of our bankruptcy attorneys. The consultation is completely free and there is no obligation.