There are a lot of negative connotations associated with bankruptcy and because it’s a touchy subject, many who are facing bankruptcy don’t take the time to explore fully what it’s all about, what it means, and the aspects of it that are not true.
To put it simply, bankruptcy is a legal status for someone who does not have the means to pay back the debts owed to creditors. It is a federal court procedure that assists in paying back your debts and, therefore, getting rid of it. With that in mind, it’s essential that you do your homework and refrain from believing some of the myths that have come to be associated with bankruptcy.
For one, you will not lose everything. The bankruptcy laws will vary depending on what state you live in but they each have exemptions that ensure you will not lose your house, whatever money has been put towards a retirement or whatever goods are in your household. Do keep in mind that mortgage payments are entirely separate from filing for bankruptcy, so you still need to keep making those.
Another common myth is being unable to receive credit ever again. Yes, you will eventually start to receive offers for credit cards, except they will be offered by subprime lenders with interest rates that may be much higher than what they were before.
One final thing: all of your debts will not be wiped out. Student loans, child support, alimony, these are just a couple of debts you will still be responsible for paying back even if you file for bankruptcy.
Throughout all of this it’s imperative that you remember this: you are not financially irresponsible. There are countless circumstances that could put you in a difficult financial situation, whether that’s suddenly becoming unemployed or having to deal with an illness, for example.
For any questions you may have about your bankruptcy options, contact a Fort Lauderdale bankruptcy attorney at Bigge & Rodriguez, PA by giving us a call at 954-400-7322. Our frequently asked bankruptcy questions on our website can also answer some of your concerns.