There are numerous myths about bankruptcy that are often rooted in fear or misinformation. No one is to blame. It is perfectly understandable that entering this legal process can come with questions or uncertainty. Our experienced legal team at Walker & Walker Law Offices developed this guide to deliver the facts you need to make a responsible and sound financial decision. Keep reading to learn more about these common myths about bankruptcy and the actual truths behind these fabrications.
Myth 1: Creditors Will Take Everything You Own
The most common misconception about filing for bankruptcy is that the creditors have carte blanche to take everything you own as compensation for your delinquent debts. Know that our firm works to protect your property to the fullest extent allowed by law. There are exemptions in place that will allow you to keep your home and vehicle, as long as you continue making payments or enter into a repayment plan.
Myth 2: Your Credit Score Will Never Recover
While it is true that filing for bankruptcy will affect your credit score initially, it certainly does not mean permanent financial ruin. For many of our clients, bankruptcy is the most direct path to rebuilding your creditworthiness. It will only stay on your file for seven to 10 years—not forever. Our legal team can help you obtain a 720 credit score and secure a mortgage in just two years after we file, or a car loan within 30 days. By properly managing financial obligations after the court discharges your debt, you have the same opportunities as everyone else to grow your credit score.
Myth 3: Filing for Bankruptcy Is Irresponsible
Our compassionate attorneys at Walker & Walker hear this inaccuracy about reorganization all the time, and nothing could be further from the truth. Many responsible, hardworking individuals experience financial difficulties. What is actually irresponsible is ignoring your money issues and doing nothing to solve them.
A job layoff, a difficult divorce, a debilitating medical condition, are some of the many reasons you can seek bankruptcy relief. Debt counseling has been a mandatory bankruptcy provision since 2005, and if you take these classes seriously and follow your attorney’s advice, you can regain financial freedom post-bankruptcy.
Reach Out to a Bankruptcy Law Firm With 40 Years of Experience To Debunk Mistruths
Do not let the myths about bankruptcy discourage you. These tall tales should never keep you from taking steps toward financial recovery. You deserve a fresh start, and our understanding attorneys at Walker & Walker Law Offices have helped thousands of Minnesota residents like you understand what bankruptcy is really all about.
Let us begin your case today with zero down. Because we can complete the entire process over the phone or online, there is no reason to delay. Take control over your finances and recover your peace of mind with our free case evaluation.