Hilarious! 5 Bankruptcy Myths in the World
Filing for bankruptcy is not as simple as some may think, especially when you have to file for Chapter 7 or 13 bankruptcy. Haven’t you heard a few bankruptcy Hamilton myths that left you super scared of bankruptcy. Here are some bankruptcy myths that have been dispelled for you to make your time through the process a little easier.
1. You’ll lose everything
Filing for bankruptcy doesn’t mean you have to give up all your possessions and assets. No, you will not have to lose your house or your car, or any other assets that you have during the time you’ll be filing for bankruptcy. In fact, you will most likely keep most of your assets. As the debtor, you will not have to give up any of your assets as most of the Chapter 7 cases are always no-asset cases. For this reason, you will have to carve out the assets that are called exemptions, the one that you need for your day-to-day life.
In Chapter 13 bankruptcy, you get to keep all your assets even though their values figure into your repayment plan.
2. You will relieve all your debts
You need to know that there are some exceptions of debt that even Chapter 7 and 13 will not relieve you from. Those debts that you can be deemed personally responsible for are among the exempted debts that you will have to pay. There are some debts that you’re most likely never going to successfully evade like child support, family support, recent taxes, and even the debts that come up as a result of some fraud you committed.
That student loan that you took a while back is also another one of these exempt debts that you will have to pay and is unlikely to be forgiven.
3. The better option is to pay off your debts
Filing for bankruptcy may at times look to be the best option for you to take when you figure there is no other way out of the financial crisis you’re in. You may think it is a bad idea, but when you look at it from a financial point of view, it may be the best option for you to consider. There is always that downside that it comes with where it hits on your credit score. But when you compare this to all the stress and pressure you get from wanting to pay off some debts, and you have no capital to do so, then you may end up welcoming the idea.
4. It is a personal failing to file for bankruptcy
If you have done your research on the matter, you will realize that about 57% of all the bankruptcies in 2009 resulted from medical bills. And you will also realize over the past decade alone, the cost of the economy’s medical deductibles has grown by up to seven times faster than the wages have risen. It is for this reason that you will realize that most of the bankruptcies that are filed are as a result of the stagnant wages and not poor financial management.
5. Your financial future will be ruined by bankruptcy
You may not know this yet, but there are chances that your credit report will bounce back after you file for bankruptcy. Another way that you can use to improve your credit score after you have filed for bankruptcy is to get a secured credit card. At first, you are bound to get a lot of restrictions, but if you follow the right procedures, then you are on your way to improving your financial future.