Misconceptions about Bankruptcy
Bankruptcy protection is an advantage the government gives to American citizens. Although it is a common practice for individuals and businesses alike, there are still many misconceptions about it. A few of these misconceptions include:
1. Filing for bankruptcy means you have failed
Thousands of normal, hardworking people file for bankruptcy in the U.S. every year. In most cases, the need for bankruptcy arises because of a major change in their life, such as losing a job, getting a divorce, being diagnosed with a serious illness, or being in a serious accident. All of these situations take a major toll on a person’s finances, and there is little they can do to fight it. Bankruptcy protection gives many Americans a way to start fresh and get back to living a normal life without the weight of debt on your shoulders.
2. Everyone will find out you filed for bankruptcy
Bankruptcy filings are public record. However, unless you are a well-known or prestigious person, or the owner of a major corporation, usually the only people who find out about your bankruptcy are your creditors and anyone you decide to tell. Unless someone is looking up information on you specifically, there is a good chance no one will find out. Additionally, there are so many bankruptcy filings that newspapers are no longer able to keep up and publish them.
3. You will lose everything if you file for bankruptcy
A common misconception about bankruptcy is that it will result in you losing your home, your job, and everything you own. This is the major misconception that keeps most people who should file for bankruptcy from doing so. Most people who file for bankruptcy are able to keep of lot of their personal belongings. Bankruptcy laws have certain exemptions that protect various kinds of assets. In Alabama, protected assets include your insurance, personal property such as books, clothing, and family portraits, tools needed to do your job, and most of your earnings. You will also be able to keep your house and certain vehicles, as long as you stay up-to-date on your scheduled payments. As for your job, it is unethical and illegal for employers to discriminate against individuals who have filed for bankruptcy. This rule applies to your current as well as future employers.
4. Your finances and credit are ruined forever
On the contrary, for most people, bankruptcy protection is the first step toward rebuilding already poor credit. If you have a job that provides a steady income, and you can continue to make timely payments on your home, car, and any credit cards you have, your credit can be reestablished within a couple of years.
5. Bankruptcy is a bad thing
Filing for bankruptcy is not an easy thing to do, but if you are suffering, it can provide you the relief you need. You may think that filing for bankruptcy is weak and a bad thing, but this is not true. Bankruptcy is a means to give you a fresh start. You can use this protection to rebuild your life the way you intended it to be. It is a time to rebuild your credit, save for the future, and shake the burden of debt off your shoulders. It is an opportunity given to American citizens by the federal government, and those who need it should take advantage of it.
Contact a Birmingham Bankruptcy Lawyer
If you are looking to file for bankruptcy, contact a bankruptcy lawyer. At GREENWAY BANKRUPTCY LAW, LLC, our attorneys are devoted to helping citizens through the filing process, and making sure their assets and rights are fully protected. To discuss the details of your case with one of our compassionate lawyers, contact our office at (205) 324-4000 today!