Myth: Only Irresponsible People Need Bankruptcy
Often when the plight of those filing for bankruptcy is brought up, some will dismiss any calls for understanding by saying that the filers deserve it. Surely, their irresponsible actions have caused their problem. While it’s true some cases deal with reckless spenders, often bankruptcy is a result of unforeseen financial hardships, like medical expenses or long term unemployment.
Myth: Filing Will Leave Your Credit and Possessions in Ruins
Although it is true that filing for bankruptcy will have a negative impact on your credit in the short term, so too does continuing to carry debt you can’t handle and defaulting on payments. The difference is that bankruptcy leaves you better positioned to start rebuilding your credit going forward. There is also often the concern that filing will mean forfeiting your belongings to cover your debts, but in most personal filings this is not the case.
Myth: Bankruptcy Is a Cure-All Solution
Bankruptcy has many benefits, but it is not a magical fix for all of your problems. Some financial debts, such as student loans or support obligations, are not covered by filing for bankruptcy. Similarly, if there is a pattern of high spending shortly before filing it may be ruled to be fraud, and as such ineligible for protection.
IF you’re currently struggling under the burden of your financial obligation then bankruptcy might be the best solution for you. The easiest way to find out if you’ll benefit from filing for bankruptcy is to speak with an Oxnard bankruptcy lawyer today. They’ll help you determine if filing is the best decision for you, and guide you through the process if it is.