Personal bankruptcy is a very undesirable situation. Often caused by sudden changes in your financial situation due to medical emergencies, unemployment, excessive debt, or divorce, filing for personal bankruptcy should be viewed as a responsible step in regaining financial freedom. If you are considering filing for personal bankruptcy, here are some of the myths and facts about it.
Myth No. # 1: You cannot file for personal bankruptcy.
Contrary to this myth, changes made by the United States Congress in 2005 allow any debtor to file for personal bankruptcy. Bankruptcy is also governed by state laws. If you file for bankruptcy in Arizona, Arizona bankruptcy attorneys and Phoenix bankruptcy attorneys can help you determine if you qualify for a Chapter 7 (asset liquidation) or Chapter 13 (reorganization) bankruptcy.
Myth # 2: Filing for personal bankruptcy is embarrassing.
If you don’t file for bankruptcy, it will actually be even more embarrassing to be harassed by your creditors. Taking charge of your financial situation and taking on your responsibilities is truly admirable and should be something to be proud of.
Myth No. 3: You will always have a bad credit score.
If you must know, the completion of personal bankruptcy proceedings will erase all previous credit histories, allowing you to start with a new, clean slate. Many Phoenix bankruptcy attorneys and Arizona bankruptcy attorneys can guarantee this based on their extensive experience.
Myth # 4: You can only file for personal bankruptcy once in your life.
If you have filed for Chapter 7 bankruptcy, you will have to wait 8 years before you can file for the next Chapter 7 bankruptcy. On the other hand, you can file for Chapter 13 bankruptcy as often as your situation requires.
Myth # 5: Personal bankruptcy means losing everything you have.
Rather, bankruptcy is designed to protect the debtor from losing all assets and, at the same time, find a way to pay off all debt. Phoenix bankruptcy attorneys and Arizona bankruptcy attorneys can give you the right information so you don’t end up losing any of your precious belongings.
Myth # 6: Filing for personal bankruptcy is difficult and impossible.
Anyone can file for personal bankruptcy. You will not have any difficulty. If you wish, you can hire Phoenix bankruptcy attorneys and Arizona bankruptcy attorneys to assist you every step of the way.
Personal bankruptcy is a serious but effective solution to your financial problems. Before applying for one, make sure you have explored all the bankruptcy alternatives available.