Bankruptcy Misconceptions

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If you are thinking about filing for bankruptcy, there is a common misconception out there. This misconception is that people end up in bankruptcy as a result of mismanaging their finances. The truth is that the vast majority of people who file for bankruptcy end up doing so because of medical debt. You shouldn’t worry about the stigma of bankruptcy. Instead, you should rely on the help of a Rockville bankruptcy lawyer. There are a few other misconceptions about bankruptcy that you should have cleared up before you make a decision.

Misconception 1: You Will Lose Everything

The first misconception that you have to forget is the idea that you will lose everything. Too often, people are afraid to file for bankruptcy because they think they are going to lose everything, even the shirt they are wearing. This is not the case. The bankruptcy process has been designed to provide you with a fresh start. During the bankruptcy process, you will have to declare everything of value. On the other hand, with the help of a trained attorney, you can keep your home, one of your cars, and a large amount of your property. It is the job of your attorney to make sure that your rights are protected as you go through the bankruptcy process.

Misconception 2: All of Your Debts will Disappear

There is another common misconception that you need to forget. Sometimes, people think they by declaring bankruptcy, they will get to discharge all of their debts. It is true that if you file for bankruptcy, you will get to discharge a lot of your debt such as credit card debt and medical debt; however, you will not be able to discharge all debts. For example, if you have student loans, not all of these debts can be discharged. If you have a judgment from a civil suit against you, you might not be able to discharge these debts either. It depends on the circumstances of the case. You need to make sure that as much of your debt is discharged as possible. This is another area where an attorney can help.

Rely on the Help of a Trained Attorney

There is a false stigma surrounding the bankruptcy process that can give this filing a false reputation. The reality is that the bankruptcy process has been designed to help you. Rely on the help of a trained bankruptcy attorney.

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