If you find yourself stressing out about how to keep your house and car, there is a good chance you have thought about filing for bankruptcy. There is so much misinformation out there about this type of financial protection. Many people in Philadelphia do not realize how much it can help their situations. If the only thing holding you back from considering bankruptcy is misinformation, it is time for you to learn the facts.
Bankruptcy is not a bad thing. Many individuals who have found themselves in dire financial straits have used it to start over. Some of them file to reduce their debts so they can pay them back without experiencing financial hardship. Others have used it to discharge their debts and keep their home, cars and other assets. To better understand how beneficial bankruptcy can be, consider the truth about these common bankruptcy myths.
It will destroy your credit
Delinquent bills, late payments and poor financial management skills all have a negative impact on your credit profile. Filing for bankruptcy is not going to give you a squeaky clean credit profile. Once your bankruptcy claim is approved, it will end up on your credit report. It might have an adverse effect on your credit report for up to 10 years. However, the impact is much less than if you were to continue falling behind on your payments. After you finish the process, you will be in a much better position to rebuild it.
Bankruptcy does not allow you to keep assets
Filing for bankruptcy does not mean you have to give up all of your assets. Depending on your circumstances, you might qualify for exemptions that allow you to retain possession of your house, cars, jewelry, inheritances, retirement accounts and other assets.
Bankruptcy is not meant to put you into financial ruin. It is a form of protection that can help you regain control of your finances. If you have concerns or want to learn the benefits that are specific to your situation, you should consider speaking to an attorney.