Faced with mounting debt and no way to pay bills, many Americans are struggling to make ends meet and to keep the bill collectors at bay. Many of these people could benefit from filing for bankruptcy. However, many also fear the stigma of filing for bankruptcy. Many fear that bankruptcy will forever jeopardize their financial futures. Here, we will debunk several prominent bankruptcy myths and shed some light on a subject many find taboo.
Filing for Bankruptcy is a Crime
Unlike in the board game Monopoly, filing for bankruptcy is not the end of the road. In fact, filing for bankruptcy can create a fresh start for people overwhelmed with debt. While it is commonly associated with fiscal irresponsibility, the fact is that there are many reasons why a person's debt can spiral out of control, and very few of them involve willful or frivolous overspending. Medical debts are far and away the most common cause of mounting debt, followed by student loan debt, unemployment, and divorce. Often these factors are partly or wholly beyond the debtor's control. Filing for bankruptcy can sometimes be the economically best option for people trapped under a mountain of involuntary debt.
My Credit Will Never Recover
Although it is true that, in the short term, filing for bankruptcy will negatively affect your credit, it is not a recipe for total disaster - not by any means. In fact, many bankruptcy filers are surprised by how quickly they begin to receive credit card offers in the mail again. Begin again by obtaining a secured credit card (in which the payments are secured by a deposit you make to the bank), and making regular payments to the card. Gradually, your credit score will increase. Given the right circumstances, you may even be able to qualify for a mortgage only a few years down the line.
Bankruptcy is a Cure-All
A too common bankruptcy myth is that filing for bankruptcy will wipe out all debts and give the filer a whole new life. Although filing for bankruptcy does come with many benefits, it is not a magic wand. Many debts are not dischargeable through bankruptcy, such as student loan debts and back taxes. It will take time to rebuild after a bankruptcy, as you work to regain the confidence of creditors. Depending on the type of bankruptcy you decide to file for, you could end up losing assets such as your home or your car. A bankruptcy lawyer will help guide you toward the best solution for your specific financial situation, whether it be credit counseling, debt consolidation, or filing for bankruptcy.
The Richard West Law Office aims to help local residents resolve their debt problems. They understand that debt can be overwhelming and want everyone to achieve a financially healthy future. They provide high quality legal representation that helps lower monthly debt payments, stop wage garnishment,prevent foreclosures and repossessions, and stop calls from creditors. The bankruptcy lawyers in Cincinnati have many years of experience in all aspects of Chapter 7 and Chapter 13.
Article Source: http://EzineArticles.com/?expert=Rick_N_West
Article Source: http://EzineArticles.com/7932896
Filing for Bankruptcy is a Crime
Unlike in the board game Monopoly, filing for bankruptcy is not the end of the road. In fact, filing for bankruptcy can create a fresh start for people overwhelmed with debt. While it is commonly associated with fiscal irresponsibility, the fact is that there are many reasons why a person's debt can spiral out of control, and very few of them involve willful or frivolous overspending. Medical debts are far and away the most common cause of mounting debt, followed by student loan debt, unemployment, and divorce. Often these factors are partly or wholly beyond the debtor's control. Filing for bankruptcy can sometimes be the economically best option for people trapped under a mountain of involuntary debt.
My Credit Will Never Recover
Although it is true that, in the short term, filing for bankruptcy will negatively affect your credit, it is not a recipe for total disaster - not by any means. In fact, many bankruptcy filers are surprised by how quickly they begin to receive credit card offers in the mail again. Begin again by obtaining a secured credit card (in which the payments are secured by a deposit you make to the bank), and making regular payments to the card. Gradually, your credit score will increase. Given the right circumstances, you may even be able to qualify for a mortgage only a few years down the line.
Bankruptcy is a Cure-All
A too common bankruptcy myth is that filing for bankruptcy will wipe out all debts and give the filer a whole new life. Although filing for bankruptcy does come with many benefits, it is not a magic wand. Many debts are not dischargeable through bankruptcy, such as student loan debts and back taxes. It will take time to rebuild after a bankruptcy, as you work to regain the confidence of creditors. Depending on the type of bankruptcy you decide to file for, you could end up losing assets such as your home or your car. A bankruptcy lawyer will help guide you toward the best solution for your specific financial situation, whether it be credit counseling, debt consolidation, or filing for bankruptcy.
The Richard West Law Office aims to help local residents resolve their debt problems. They understand that debt can be overwhelming and want everyone to achieve a financially healthy future. They provide high quality legal representation that helps lower monthly debt payments, stop wage garnishment,prevent foreclosures and repossessions, and stop calls from creditors. The bankruptcy lawyers in Cincinnati have many years of experience in all aspects of Chapter 7 and Chapter 13.
Article Source: http://EzineArticles.com/?expert=Rick_N_West
Article Source: http://EzineArticles.com/7932896
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