Uncertainty is one of the most frustrating parts of facing growing debts. People that are dealing with considerable financial burdens be unsure about their options, which often leads to more frustration and confusion. One of the primary sources of uncertainty and misunderstanding regarding debt settlement are bankruptcy myths that lead people away from this viable option.
At the Law Offices of Russell Van Beustring, P.C., our team of Katy bankruptcy attorneys has compiled a list of common bankruptcy myths that may contribute to a debtor’s view of bankruptcy options. For information about our services, your rights, and what we can do to help you, contact our offices at 713-973-6650.
Myth: My place of work will be alerted about my bankruptcy application.
Fact: Your current employer can only find out about your bankruptcy if they run a credit check, which cannot be done without your permission. By taking action to address your financial distress, you can avoid issues such as wage garnishment that may alert your boss and other co-workers about your current situation.
Myth: My credit will be irreparably damaged after bankruptcy.
Fact: Although bankruptcy has a negative effect on your credit initially, you can rebuild your score after debts have been eliminated or restructured to a manageable amount. Taking action to get a fresh start is more helpful to your credit score than avoiding bankruptcy.
Myth: By filing for bankruptcy I will be ruining my spouse’s credit score.
Fact: Just because you have debts that may be unmanageable for you does not mean your spouse will also have to file for bankruptcy or that their credit will take a hit. If your financial burdens are not tied to your partner, your bankruptcy filing will not affect them.
Myth: I will lose everything if I file for bankruptcy.
Fact: Bankruptcy is often viewed as a penalty for failing to take care of financial obligations, but it is in reality an opportunity for people facing tough economic times to relieve some of the stress on their personal finances. Bankruptcy is designed to help people keep their homes, cars, and other possessions while restructuring payment plans and clearing away the debt that has accumulated over time.
These and many other myths may have clouded your view about bankruptcy, but the Katy bankruptcy attorneys are here to help you regain a clearer understanding of the many ways that this process can help you. Contact our offices at 713-973-6650 to talk to one of our lawyers about your situation and what we can do to help you regain control of your finances today.