Separating fact from fiction concerning consumer bankruptcy | Reed Law Firm, P.A.

Separating fact from fiction concerning consumer bankruptcy

On Behalf of | Aug 2, 2017 | Bankruptcy |

Many individuals have experienced the overwhelming burdens of debt at some point in life. One of the leading causes of personal debt is credit cards, which may be easy to obtain and use, but if you get behind on payments, you might suddenly find yourself in a significant financial bind.

If this sounds familiar, you may be wondering how you can overcome your financial struggles. You might even be considering consumer bankruptcy, but perhaps you have some reservations about the process and wish to separate bankruptcy fact from fiction before proceeding.

Separating fact from fiction in bankruptcy

It is often advisable to put a fair amount of thought into the decision to file for bankruptcy. However, it could be detrimental to avoid it altogether because of misinformation or misconceptions regarding the process. Some common myths surrounding bankruptcy that could be giving you cause for concern may include the following:

  • Liquidation of assets:  Although certain chapters of bankruptcy may call for the liquidation of certain assets, this doesn’t necessarily mean all your assets, and seeking advice on how the process will impact this area of your life before deciding on a path is likely in your best interests.
  • Impact on credit:  Filing for bankruptcy will have an impact on your credit for a set period depending on which chapter you file. However, continuing to struggle with payments could prove much worse in the long run, and with bankruptcy, you may be able to begin rebuilding your credit shortly after filing and completing the process.
  • Better alternatives:  While repaying debts might seem like the best option, if you are continually unable to do so, you might be suffering a lesser quality of life, and filing for bankruptcy could help lift a financial weight off your shoulders.
  • Filing denotes failure:  It may not always be possible to avoid debt, as a loss of employment or medical emergency can upend your finances, and bankruptcy could be just the tool you need to recover.

Before writing off bankruptcy as a viable option, you might find it beneficial to seek guidance from someone with experience in this area. His or her advice on the available options and their respective impacts on assets and debts could help place you in a better position to decide on the correct path for relief.

Seeking advice and assistance

Perhaps you wish to pursue debt relief via bankruptcy, but the process seems somewhat overwhelming and intimidating. You don’t have to go through it alone and seeking advice from someone with extensive knowledge of federal and South Carolina state bankruptcy laws may even help you make the correct choices regarding your financial future. With this type of guidance, you may be able to obtain peace of mind by overcoming the stress and burdens of personal debt through bankruptcy.

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