There is a lot of folklore and myths about bankruptcy that prevents too many Americans from seeking the debt relief they need. Below are three of the most damaging beliefs about bankruptcy that every debtor needs to banish from their minds:
- Bankruptcy is an embarrassing thing to do. Just stop it. Don’t believe this notion or you could end up saddled with unmanageable and impossible to pay debt for the rest of your life. There is nothing embarrassing about bankruptcy. Bankruptcy is smart and something that savvy, courageous individuals do when they realize they’ve reached their financial limits. Only foolish people avoid bankruptcy and allow creditors to devour their assets when they have the opportunity to save themselves and get a fresh start. There is no shame in filing bankruptcy; even some of the wealthiest and most successful business people have filed bankruptcy at least once.
- Bankruptcy will ruin my finances forever. Let’s get very honest here. If you’re considering bankruptcy, your finances are already ruined and you’re probably facing a lawsuit or two. Bankruptcy gives debtors a fresh start by wiping their debts away. Bankruptcy is about forgiveness, debt forgiveness and many lenders seek out people who have recently exited bankruptcy because lenders are in the business of lending money and they know that debtors who receive a bankruptcy discharge have little to no debt.
- Even if I file bankruptcy, I should try to repay my debts if I can afterwards. This is one of those beliefs that creditors just love to promote. Debtors have no legal or moral obligations to repay debts after they have received a bankruptcy discharge of their debts. Please do not allow anyone to guilt trip you into repaying debts after bankruptcy. Your debts are forgiven and now it is time to move on to your fresh financial start.