Some people considering bankruptcy are held back from taking action due to misconceptions about bankruptcy. They worry about what friends and family will think or worse yet how filing bankruptcy could negatively impact their immediate future.
Filing Bankruptcy Means I’m a failure
You should try to get this out of your head when you realize how many successful people and businesses have filed for bankruptcy protection so they could get their finances back in order. While your bankruptcy probably won’t make the news, the headlines are full of high-income earners and well-respected companies that file for bankruptcy.
Dishonest People File Bankruptcy
The bankruptcy laws were created to help honest people who have fallen on hard times to get a fresh financial start. Of course, some dishonest people have taken advantage of the law, but this is the exception and not the rule. It should not dissuade you from taking action to get out from under overwhelming debt; the average hard working American is who the law was created for.
Bankruptcy is For People Without a Job
Most people who file for bankruptcy do have an income, for whatever reason they have fallen behind and needed bankruptcy projection to protect the assets they have. If you absolutely have no income and need to relieve yourself of your debt, you can give up your assets to be sold off and satisfy your creditors. Your assets will not be sold in bankruptcy without your consent, although most people who file bankruptcy do not lose any of their assets.
Can No Longer Get Credit or Loans
When you file for bankruptcy, you are given a fresh financial start. This action can stay on your credit report for up to ten years. When your overwhelming debt is gone, you can learn to use credit responsibly and practice living within your means. At first, the lenders may offer you loans with huge interest rates, but over time and you’ve shown you can be a good risk by paying your bills on time you may find the lenders are willing to give you reasonable rates again long before the ten years are up.
If you are drowning in debt and considering bankruptcy to get your head above water, contact a Cincinnati bankruptcy attorney to find out what options you may have.