Considering the number of cases that Sacramento bankruptcy attorneys handle, it’s no surprise that they’ve heard just about every folktale and myth related to bankruptcy. After all, there were more than 10,000 bankruptcy filings in California during October 2013 alone. Sadly, many people believe the myths that they hear, and this prevents them from ever considering the positive aspects of bankruptcy. Fortunately, the most damaging of these myths are easily dispelled.
Credit Rating will forever be destroyed
Many people think that bankruptcy is a nuclear option that will forever destroy their credit rating. While it definitely is something that should be spoken about with some of the experienced bankruptcy attorneys in Sacramento, the truth of the matter is that recovering one’s credit rating is doable. In fact, many people start receiving offers for secured credit cards within a few months of filing for Chapter 13 or Chapter 7 bankruptcy discharge.
Additionally, just like everything else on a credit report, a bankruptcy will eventually roll off. When that’s combined with working towards rebuilding one’s credit, the future isn’t nearly as dreary as some people make it out to be.
Bankruptcy shows Financial Irresponsibility
Some people never consider bankruptcy, even when facing wage garnishment and other potential difficulties, because they believe that it shows financial irresponsibility. In reality, this couldn’t be further from the truth. Medical bills, for instance, are the leading cause of bankruptcy in the United States; and this is the case even for those who have insurance coverage.
Additionally, unexpected life changes such as divorce or unemployment can quickly wreak havoc on a person’s financial situation. Considering the fact that the entire country recently slipped into a recession, it’s important for people to understand that bankruptcy is no reflection on their financial maturity.
Bankruptcy will solve everything
Many people have the false belief that bankruptcy is just going to solve all of their financial issues, and for those who file without the experience provided by a Sacramento bankruptcy attorney, the truth can be a harsh awakening. In reality, foreclosures or auto repossession are both potentialities that could follow filing bankruptcy. Fortunately, a lawyer can provide insight into this and even help work the system to ensure that their client isn’t left out to dry after filing.
These myths may all seem minor, and that’s why people don’t really worry too much about whether they’re true or not. Sadly, they can actually cause a person who would really benefit from bankruptcy to avoid the process at all costs; and in the end, this can prove financially disastrous.
Speak with a bankruptcy attorney today and find out how getting a fresh start is as easy as pressing the restart button! Call now 916-446-1791
916-446-1791