Know the Truth: Misconceptions about Bankruptcy

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Bankruptcy in Arkansas It is perfectly understandable why you may be reluctant to file bankruptcy even when you actually need to. Apart from tarnishing your reputation, you also believe that it is likely that you’ll lose everything you have and will never get credit again.

While the concept of bankruptcy is mostly negative, it isn’t nearly as scary once you know the facts. The truth is, there are plenty of misconceptions surrounding bankruptcy.

Everyone will Know

One common concern is that everyone will know that you have filed for it. While bankruptcy is a public legal proceeding, there are plenty of people filing for it and only a few publications have the inclination or the space to publish all the names. Unless you’re a prominent figure, it is also possible that the people will know about it are your creditors.

I’ll Live in a Cardboard Box

Bankruptcy attorneys in Arkansas note that is a popular misconception that you’ll lose everything you have when you file for it. The laws vary from state to state, but every state has exemptions that will protect specific types of assets like car, house, or retirement plans. It is not true that you will have to start your life over in a cardboard box.

No One Will Lend me Money

It is also unlikely that you’ll never get credit after filing for bankruptcy. The truth is, there are plenty of lenders that will provide credit, but some offer high-interest rates. This means that you’ll never have to do something underground to buy a car if you need one. It is best, however, to take it easy with the spending to avoid piling up bills gain.

It’s Difficult to File

Contrary to popular belief, filing for bankruptcy is not that hard. In fact, you can do the paperwork on your own without needing an assistance. It is recommended, however, to hire an attorney to go through the procedure. An experienced bankruptcy attorney will save you headaches and troubles, as you go through the process.

If you need to file for bankruptcy, do so. This prevents creditors from collecting money or calling and suing you. An assistance from a reliable attorney will help you start over without losing everything you own.