We’ve written a bunch of posts over the last couple of months about the bankruptcy process and how there are some simple, effective steps you can take to progress through the filing. It is an intimidating process — we can’t deny that. Bankruptcy has a stigma and people will feel that on some level, even if they know that the filing will help them in the long run.
However, there are some downright lies and myths when it comes to bankruptcy that may make people avoid filing for Chapter 7 or Chapter 13 even when they desperately need to. So what are some common misconceptions about bankruptcy, especially when it comes to the effect it will have on your life?
Your credit, though temporarily hurt, will not be damaged for the rest of your life. A bankruptcy will stay on your credit report for some time, but you can repair your credit score through responsible financial management in the years that follow a bankruptcy.
Just because you file for bankruptcy does not make you a bad person. Many people go through difficult financial times. You are not alone in this. Just because this happens to you does not mean you have failed at life or that you are somehow a “bad” person.
Your assets won’t be swept away from you in the middle of the night by repo men. There are many rules and regulations about assets and repossessing them in the wake of a bankruptcy filing, and with legal help on your side, you can utilize the law and your rights to protect yourself.