Many people get frightened by the term ‘bankruptcy’ and seldom consider filing it during trying financial times. However, what they don’t know is that filing for bankruptcy can often be the best thing they do for themselves and their family.
There is tons of misinformation surrounding bankruptcy, making people weary of it. This is why we have compiled this informative guide debunking bankruptcy myths and giving you the facts.
If you are considering filing for bankruptcy, it’s important to have all of the right information first to help you make a sound decision. We will detail everything you need to know.
Myth #1: Bankruptcy Will Ruin Your Credit Score Permanently
The most common myth surrounding bankruptcy is the belief that it will destroy your credit score. This is entirely false. While it will reduce your credit score down to 100-200 points, it will not lead to a 0.
In fact, bankruptcy will steadily improve your credit score in the long run since you won’t have any debts. Bankruptcy gives you a fresh start to your financial journey so you can start rebuilding your score.
Myth #2: You Will Lose All of Your Assets and Possessions
This is another common myth that is entirely false. When you file for bankruptcy, you don’t start from 0. There are state and federal laws put into place that protect your assets when you file, so you don’t lose most of your possessions.
When you employ professional help, such as with experienced bankruptcy lawyers at Corpus Christi, we will work relentlessly to protect your assets so you don’t lose everything.
Myth #3: You Won’t Be Able to Make Big Purchases or Apply for Credit
When you initially file for bankruptcy, you might have difficulty applying for credit, loans, and mortgages because creditors will have difficulty trusting you. However, after filing for bankruptcy with experienced debt relief services in Texas, such as with Joel Gonzalez, you will likely not suffer from these consequences. A number of our clients have been able to get credit cards or mortgages a few months after filing. It’s all dependent on your case and financial habits.
Myth #4: Your Bankruptcy Will Have a Harmful Impact on Your Spouse’s Credit Score
Regardless of whether you file for bankruptcy, Chapter 7 or Chapter 13, your spouse’s credit score will largely be unaffected. We’ve seen so many of our clients worry about this, but luckily, this is all just a myth and completely untrue.
Myth #5: Everyone Will Find Out About Your Bankruptcy
Another common worry for most people is that their friends, co-workers, and family will find out if they file for bankruptcy. However, this is not true. They will only know if you tell them.
The Bottom Line
The mounds of misinformation surrounding you may make the decision to file for bankruptcy difficult. This is why it is imperative that you get in touch with experienced professionals who can answer all of your bankruptcy-related questions and steer you in the right direction.
Joel Gonzalez has years of experience dealing with debt settlements and bankruptcy debt relief for his clients. We are the leading debt relief service in Texas, so if you are looking for a bankruptcy lawyer in Corpus Christi, TX, get in touch with us today by visiting our website.
