Sometimes, your finances and the payments that you owe might become overwhelming. An option is to file for bankruptcy. Here are a few myths to keep in mind so that you’re comfortable with making this decision.
Never getting credit
A common myth surrounding Chapter 7 bankruptcy is that you won’t be able to get any kind of credit in the future. You might have to wait a certain length of time, usually seven to 10 years, as this is typically how long a bankruptcy stays on your credit report, but you should be able to begin building your credit back once again after this timeframe.
Difficult process
While there are several details involved in filing for bankruptcy, the overall process isn’t as difficult as it seems. You can obtain legal assistance to help with completing the forms that you need to file and to help communicate with creditors and agencies so that you don’t make any mistakes regarding making promises to make payments that you shouldn’t make.
Immunity
One of the most common reasons why you might want to file for bankruptcy is so that the collection activities that are being performed against you cease. Once you’ve filed and everything has been through the court, then you’re protected creditors, which also includes their attorneys and representatives. This means that they should not contact you in any way, such as calling you or sending you letters. If you do receive any type of communication attempt from a creditor, it’s important to give the information to the court so that the proper actions can take place.
Filing for bankruptcy is a common way to help you get back on the right financial track. Although there is quite a bit of information, it’s important not to focus on details that aren’t exactly true.