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3 Commonly Believed Myths About Filing For Bankruptcy

3 Commonly Believed Myths About Filing For Bankruptcy

Many people have this skewed image in their minds about what it would be like if they ever filed for bankruptcy: they would have to be absolutely penniless in the first place, they would no longer own any of their valuable possessions, they wouldn’t be able to take out any more loans, etc. All these things are simply not true. Let’s set the record straight on what it’s like to be bankrupt, and what you can and cannot do financially after you’ve filed for bankruptcy in Atlanta, and elsewhere.

1. You have to be completely broke to file bankruptcy

It’s often understood that people who file bankruptcy no longer have but a penny in their pockets (literally), but this is false. Actually, you can even file if you still have a car, house, and a spouse with a stable income. People end up filing for bankruptcy when they can longer keep up with their financial responsibilities to their lenders. That’s all it really entails.

2. Bankruptcy will take away all your possessions

Many individuals fear declaring bankruptcy – thinking that their lenders will rush in and take all of their precious goods, however, there are serious limits on what institutions can take from a bankrupt person. When Atlanta bankruptcy cases are filed correctly, they can stop foreclosure of a home or the repossession of your car. Bankruptcy should allow you to regain financial responsibility, and it would be counter-intuitive if lenders took all of your possessions.

3. You cannot apply for new loans

A bankruptcy can affect the terms and the cost of interest that a credit company or a lender will offer to you. Bankruptcies stay on your records for 10 years (at most). However, if credit companies chose to stick their noses up at anybody with a bankruptcy in their records, they themselves would go bankrupt. As a precaution, lenders will offer you different terms and rates in order to ensure their financial safety.

If you’re thinking about filing for bankruptcy, don’t hesitate to contact the Adkins Firm, you’re top notch bankruptcy attorneys in Atlanta!

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