Dealing with bankruptcy can be a difficult time in someone's life, but it’s important to remember that all hope is not lost. It can generate intense feelings of shame, judgment, and anxiety. In this article, we will discuss the three most common myths surrounding bankruptcy and reveal how they are very far from the truth.

Myth 1: You Will Lose Everything

During the filing process, you will learn more about the concept of asset liquidation, and whether you will lose some of your assets. While this can be extremely tough to experience, it’s important to know that bankruptcy laws offer exemptions that can protect some assets from being liquidated for debt repayment. These exemptions can include your home, household items, and retirement funds. However, this does depend on your state laws, so it’s important to discuss this with your bankruptcy attorney.

Myth 2: It Will Financially Ruin You

Although bankruptcy will negatively impact your credit score, you should know that it’s not forever. In fact, according to USA Today, bankruptcy scores can stay on your financial record for up to 10 years. This means that after a decade, you have a clean slate. This may seem like a long time initially, but in hindsight, it’s good to know that there’s light at the end of the tunnel.

Myth 3:You Were Irresponsible

It’s common for people to judge others and assume that when you’re filing for bankruptcy it's because you made some terrible financial decisions. However, this is not the case for everyone. In fact, filing for bankruptcy means that you recognize you are seeking support. Some people are sadly victims of circumstances such as job loss, debt from a loved one, medical bills, or a failed business investment. Your bankruptcy attorney can help guide you through this process without judgment.

Debt can feel suffocating and make it seem as though there is no way out. However, by hiring the help of a bankruptcy attorney, you can have the best support to get you through this difficult time in your life. By debunking these myths, we hope to free you from judgment and help you feel comfortable reaching out for the help you need. To learn more about your options when filing bankruptcy, you can reach out to our team of legal experts at Hedtke Law Office. Let’s get through this together. Call today for a free consultation.