Personal bankruptcy is a very undesirable situation. Often caused by sudden changes in your financial situation due to medical emergencies, unemployment, excessive debt, or divorce, filing for personal bankruptcy should be viewed as a responsible step toward regaining financial freedom. If you are considering filing for personal bankruptcy, here are some of the myths and facts about it.
Myth #1: You can’t file personal bankruptcy.
Contrary to this myth, changes made by the US Congress in 2005 allow any debtor to file for personal bankruptcy. Bankruptcy is also governed by state laws. If you file for bankruptcy in Arizona, Arizona bankruptcy lawyers and Phoenix bankruptcy lawyers can help you determine if you qualify for a Chapter 7 (liquidation of assets) or Chapter 13 (reorganization) bankruptcy.
Myth #2: Filing personal bankruptcy is embarrassing.
If you don’t file for bankruptcy, it will actually be even more embarrassing to be harassed by your creditors. Taking charge of your financial situation and living up to your responsibilities is truly admirable and should be something to be proud of.
Myth #3: You will always have a bad credit score.
If you must know, completion of personal bankruptcy proceedings will wipe out all previous credit history, allowing you to start with a clean, new slate. Many Phoenix bankruptcy lawyers and Arizona bankruptcy lawyers can guarantee this based on their extensive experience.
Myth #4: You can only file personal bankruptcy once in your lifetime.
If you filed for a Chapter 7 bankruptcy, you will have to wait a period of 8 years before you can file for the next Chapter 7 bankruptcy. On the other hand, you can file for a Chapter 13 bankruptcy as often as your situation requires.
Myth #5: Personal bankruptcy means losing everything you have.
Rather, bankruptcy is designed to protect the debtor from the loss of all their assets and, at the same time, find a way to pay off all the debt. Phoenix bankruptcy attorneys and Arizona bankruptcy attorneys can provide you with the right information so you don’t end up losing any of your most precious possessions.
Myth #6: Filing personal bankruptcy is difficult and impossible.
Anyone can file a personal bankruptcy. You won’t have any difficulties at all. If you want, you can hire Phoenix bankruptcy lawyers and Arizona bankruptcy lawyers to help you every step of the way.
Personal bankruptcy is a serious but effective solution to your financial problems. Before filing for one, make sure you have explored all available bankruptcy alternatives.