De Bunking the Myths Surrounding Bankruptcy

The decision to claim bankruptcy is one of the biggest decisions one can make, and a life altering one to be sure. In many cases however, potential candidates for 7, 11 or 13 protection overlook the many potential benefits because of the stigma attached to having a bankruptcy on one’s record.

In such instances, a qualified attorney could make the difference between a fresh start or more of the same by pointing out that much of the stigma surrounding bankruptcy has no basis in reality. Separating the myths from reality can go a long way in determining if bankruptcy is the right path for you.

One of the biggest myths surrounding bankruptcy is that you’ll lose everything should you file. In fact, bankruptcy protection is just that, protection, and an experienced bankruptcy lawyer can help you protect your most valuable assets while repaying your debts, or have your debts discharged altogether. Every case is different, which is why it is so important to meet with a bankruptcy attorney in a timely fashion.

Many of those in financial trouble turn to Consumer Credit Counseling organizations, believing this to be a better solution than filing for bankruptcy. The truth is that repaying your debt through Consumer Credit Counseling looks no better than bankruptcy on your credit report. In fact, it can be a bigger red flag to creditors than bankruptcy.

Many of these organizations are funded by credit companies, and set up their plans to favor the creditor more than you the client. Finally, in such difficult economic times many illegitimate credit counseling companies have popped up with the goal of taking advantage of desperate consumers. Much better to put your financial future in the hands of a qualified bankruptcy attorney with the experience and goal of helping you gain a fresh financial start.

At the end of the day bankruptcy is just that; the opportunity for a fresh financial start. Today the number of consumers filing for bankruptcy protection is higher than ever, and those who have filed have begun the process of rebuilding their finances and providing hope for a brighter, less chaotic future.