Bankruptcy is a scary word and there are a million assumptions about the process that are just not accurate. For someone in a dire financial situation, the most important thing they need to do is remain calm and learn their options before making any decisions. If you’ve never looked into bankruptcy in a serious way, you may have some preconceived notions that aren’t accurate. People repeat these things so often that many assume the gossip is an accurate representation. And the gossip always makes things more dire than they are in reality.

Bankruptcy – Myths Versus Reality

When you hear that someone declared bankruptcy, it’s often said in whispered tones with the underlying implication, “poor thing, they’re ruined.” While it’s certainly not pleasant to need to couple discussing propertydeclare bankruptcy, the laws were created to help you rebuild, not sink you for life. Filing for bankruptcy should be a lifeline to start over, build new financial habits and form a stronger future. Still, people have inherent fears about how filing for bankruptcy will impact their lives going forward.

  • You Can Buy Property. A bankruptcy is on your record but that doesn’t necessitate that you’ll never be able to get a loan for a mortgage again. The bankruptcy will eliminate the debts on your credit and allow you to start paying on time. Banks will provide credit to those who are high risk (including those who’ve filed for bankruptcy), usually as a secured loan, meaning that you need to provide a designated percentage of the total in advance.
  • You Can File More Than Once. Many people think that bankruptcy is a last resort that they can only do once in a lifetime. While the hope is that people who file will use the advantage to build the tools they need for future financial success, it’s not a situation where once you’ve filed you can never do so again. There is no limit to the amount of times you can file, though you cannot file twice within a set amount of time.
  • It Won’t Ruin Your Credit. Quite the opposite – filing for bankruptcy is designed to clear up your credit. The bankruptcy will stay on your record for 10 years but you can build new and positive credit right away.

Call an experienced bankruptcy attorney, like Clark & Washington, to ease your mine about filing for bankruptcy. Do not just believe what you hear, get your information from the experts.