3 Dangerous Myths about Filing for Bankruptcy

Bankruptcy carries a certain stigma among many Americans, despite the fact that this legal action helps millions of people find debt freedom. Unfounded misconceptions about bankruptcy can potentially keep a debtor away from this helpful tool, leaving the individual without the support they need to get through this difficult time.

If you’re thinking about filing for bankruptcy, consulting with an experienced legal advisor may help you make a more informed decision about your future. To learn more, contact the Birmingham bankruptcy lawyers of Greenway Law, LLC, by calling 205-324-4000 today.

Myth: Bankruptcy ruins your financial hopes.

Truth: Many people see a bankruptcy as the end of their financial future, however this is actually the opposite of what bankruptcy really does for many Americans every year. Bankruptcy can help a debtor start over by clearing out most of their debt. Without the obligations to creditors, a debtor can start saving for the future and getting on with their life.

Myth: Bankruptcy can get you fired from your job.

Truth: Bankruptcy isn’t considered grounds for termination. However, if a debtor mishandles their bankruptcy and the result is poor workplace performance, they may face job loss. This is one reason why an attorney’s help is so important. When a debtor feels confident that their bankruptcy is being handled the right way, they can go about their life unhindered.

Myth: You’ll lose everything in bankruptcy.

Truth: Between Chapter 7 bankruptcy exemptions and Chapter 13 repayment plans, a debtor certainly won’t lose all of their property during a bankruptcy. While a debtor may be forced to make hard financial decisions such as letting a valued luxury item or prized car go, some debtors can hold on to their most treasured property throughout their proceedings.

Contact Us

If bankruptcy is on your mind, you may want to discuss your options with an experienced attorney. For a free consultation, contact the Birmingham bankruptcy lawyers of Greenway Law, LLC, today at 205-324-4000.