Personal Injury & Bankruptcy Lawyer in Tobyhanna, PA

Bankruptcy Will Ruin Your Credit

Many people are afraid to file for bankruptcy because they think it will ruin their credit, which isn’t necessarily true. However, bankruptcy will indeed show up on your credit report for ten years after filing for Chapter 7 and seven years after filing for Chapter 13 bankruptcy. While it can affect you to have this on your credit score, doing nothing about your debt will also ruin your credit score. After filing for bankruptcy, many people use this opportunity to work on improving their credit score.

You’ll Have to Give Up Everything

Those considering Chapter 7 bankruptcy may have been told they’ll have to give up their assets to have their debts discharged. This can happen to some who file for Chapter 7, but it isn’t always the case. Many assets are exempt from this, so you have a chance of holding onto everything you own. Plenty of people who don’t lose their assets when they file for bankruptcy, so don’t let this hold you back.

Any Debt Can Be Discharged

If you’ve never needed to look into bankruptcy before, you can easily believe that you can use bankruptcy to get rid of your debts. However, this isn’t true. Only certain debts can be discharged through bankruptcy, so you could still end up with debt after. Before taking steps to file for bankruptcy, you need to find out if your debts are applicable.

Bankruptcy Means You Were Irresponsible

Finances are a sensitive topic for many people, especially if you have a large amount of debt. One of the most common misconceptions about bankruptcy is that it means you were irresponsible with your money. This connotation can make it difficult for people to think of bankruptcy as a viable option for them. Debt can happen to anyone, and there are many situations where it’s unavoidable. Bankruptcy simply gives you a fresh start after a difficult time.