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Debunking 4 popular myths about Chapter 7 bankruptcy

| Mar 17, 2021 | Chapter 7 Bankruptcy

If you are drowning in insurmountable debt, it can paralyze you into complete inaction. In other words, you may be so troubled by your circumstances that you end up doing nothing to improve your situation.

When you finally decide to get a handle on your debt through a Chapter 7 bankruptcy, you may ask others what they know about the process. Unfortunately, the answers you receive may be wrong or misleading.

Bankruptcy is shrouded in half-truths and misconceptions that prevent many Huntsville residents from considering it as a viable option to overcome their debts. Do yourself a favor and seek an experienced opinion from a legal professional instead of relying on word-of-mouth.

Four harmful Chapter 7 bankruptcy myths to disregard

Improving your knowledge of the Chapter 7 process helps you make better legal decisions about your circumstances. Your first step is disregarding the persistent myths discussed below:

  • You lose all your possessions through bankruptcy. In many cases, you can keep many of your items and possessions. Talk to your lawyer about your options.
  • You will never be able to repair your credit. While a Chapter 7 bankruptcy will stay on your credit report for up to ten years, there are small steps you can take to begin improving your credit almost immediately.
  • You cannot get a mortgage after filing. Many lenders specialize in offering mortgages to those who have previously filed bankruptcy.
  • You could end up going through bankruptcy for years. A Chapter 7 bankruptcy typically concludes in fewer than six months, at which point you may begin rebuilding your credit score and your lifestyle.

While pursuing a Chapter 7 bankruptcy may initially seem daunting, it can provide many with the fresh start they deserve. Continue increasing your knowledge of the process by taking your questions and your situation to an attorney for review.