Bankruptcy Myths

Facing overwhelming debt can be an extremely stressful situation. Overdue bills, harassing calls from collectors, and other issues arising from unmanageable financial obligations can make it seem like all hope is lost. However, even those facing extreme financial duress have a number of different options available for returning to financial freedom. A qualified bankruptcy attorney can help those with significant debt to understand their legal and financial options and choose the best course of action.

Bankruptcy is an important legal tool for individuals who can no longer afford to manage their debts. Unfortunately, bankruptcy has a strongly negative connotation for many Americans, largely because of a number of different myths and misconceptions regarding this process. Below are some of the most common myths about bankruptcy and the truths behind them.

Myth: If you file for bankruptcy, your employers will know about it.
Fact: Current and prospective employers are prohibited by law from running a credit check without your permission. Furthermore, bankruptcy protection can help to prevent embarrassing issues such as wage-garnishments or credit collectors calling your workplace.

Myth: If you file for bankruptcy, your spouse must do so as well.
Fact: Bankruptcy protection is only necessary for those with unmanageable debts. If your debts are not jointly held with your spouse, there is no need for them to file for bankruptcy with you.

Myth: Filing for bankruptcy will make you lose everything.
Fact: Far from costing individuals the possessions they’ve accumulated over a lifetime, filing for bankruptcy can actually help to preserve important assets, such as homes, cars, and other valuables, from repossession.

Myth: Financially speaking, bankruptcy is a death sentence.
Fact: Rather than having permanently negative financial implications, filing for bankruptcy can actually significantly improve a person’s financial situation in the long term as well as the short term. Bankruptcy should be thought of as a new beginning, not a death sentence.

For More Information

Overwhelming debt can leave some feeling as if they are left without options. However, bankruptcy protection can help people in even the worst financial situations return to solid financial footing. For more information, contact the Houston bankruptcy lawyers at the Russell Van Beustring P.C., today by calling 713-973-6650.