Bankruptcy – Top 5 Myths Debunked!

Bankruptcy

Despite having the benefit of getting rid of the creditors’ calls, harassment and fear of losing every asset, people still hesitate to file for bankruptcy. Some people do not know how to file bankruptcy in Oklahoma and upon getting queries about it, we are here to give the people proper guidance about each and answer any questions to do with bankruptcy filing. But there are several misconceptions behind peoples hesitations and those hesitations play a crucial role in controlling their decisions.

We are here to debunk the myths and misconceptions on bankruptcy, so that people can have a clear idea and any unnecessary fear can be swiped away.

Bankrupt Destroys Your Credit

In fact, a bankruptcy filing can help you to mend and save your credit. When you are in debt and unable to make payments, it is already going to create an impression on your credit score. But when filing bankruptcy, you will get a chance to rebuild your credit score.

It Takes Away All You Have

If you think that you will literally become bankrupt by filing bankruptcy, you are completely wrong. Don’t think that right after filing bankruptcy, all your possessions will be taken and sold to repay your credits. You may have to sacrifice some of your assets, but there are some exemptions to keep your properties intact. Contact our attorney about the details rather than assuming.

Bankruptcy

New Laws Made Filing More Complicated

In 2005, a bankruptcy law was enacted and it helped to reduce the number of bad faith filings. It does not mean it has become complicated. Like always however, you will still need a bankruptcy lawyer to file for bankruptcy.

It Is Linked to Your Spouse

You can choose to file for bankruptcy individually and when you do this your spouse is not included. Filing for a joint bankruptcy is a better idea of course, but it is imposed by law that you have to do so.

You Are Bad with Money

Not every person that files for bankruptcy has poor financial management skills. There are tons of cases where there are medical bills, educational loans, a loss of job and many other emergencies for which they have filed for bankruptcy.

If you were also carried away with these myths, you should contact a professional lawyer to get a better view of bankruptcy filing. Chris Mudd and Associates is always ready to help you, come up with a quick solution.

** Disclaimer: This blog post does not constitute legal advice, nor does it create a client-attorney relationship.