Before declaring bankruptcy, you may feel extremely intimidated by what your friends and family members have told you about the process. However, there are several myths that surround this legal process that are simply not true. These include the following:
- Everyone will know—Unless you are extremely vocal about your personal life, the only people that will know about your decision to file for bankruptcy are your creditors and those who you choose to tell.
- You will lose everything—While you may lose some of your assets, it is unlikely that you will have to surrender everything you own. At Morgan & Partners Inc., we can help you understand which assets you will be able to keep.
- Your credit is destroyed permanently—Although bankruptcy can harm your credit, you can successfully rebuild it by using a credit card sparingly, paying your bills on time, and managing your expenses properly.
- Creditors will still harass you even after you file—The minute that you file bankruptcy, your creditors are prohibited from contacting you. If they do not leave you alone, they may face serious penalties for their actions.
- You can pick which debts to eradicate—Although it may be nice to pick which debts you want to eliminate, this decision is not up to you.
These are just a few of the myths that surround the bankruptcy process and its effects. If you have any questions about this process and how it may affect your personal situation, don’t hesitate to reach out to us at Morgan & Partners Inc.