What are some common myths surrounding bankruptcy?

We have had experiences with clients who come to the office feeling like they are alone – they are ashamed to consider filing for bankruptcy because of the misconceptions surrounding debt relief. And it is common to hear someone dismiss those who go through bankruptcy as being frivolous spenders who are bad with money and are somehow taking advantage of the legal system. But this is the wrong way to see bankruptcy. Let’s look at a couple secrets surrounding debt relief that will help change the way we view it.

#1 – Many Americans Are One Step Away From Financial Trouble

You may think you are alone if you are having trouble paying the bills or facing calls from creditors. But did you know that According to the Federal Reserve, Americans have debts tolling $2.5 trillion? That’s about $8,100 for every person in the country – and that doesn’t even include mortgage debt.

The truth is, many American’s don’t talk about their financial woes to their neighbors, coworkers, or even their friends. There are people in your life facing financial difficulties, and there are people near you who have gone through Chapter 7 or Chapter 11 bankruptcy.

Most of us fear talking about bankruptcy, or even seeking help when it comes to our debt. We feel ashamed, frightened, or even angry – and we are reluctant to get the aid we need to better our financial situation. It is important to remember that you are not alone, and that many Americans are one medical bill or one late payment away from a financial disaster. Seeking help from a bankruptcy attorney can be a normal, healthy way to get on the path to a debt free life.

#2 – It’s OK to Get Guidance About Debt Relief

Bankruptcy often gets a bad reputation, since many people see it as something that will permanently be on their record and keep them from getting good credit or a mortgage.

The truth is, bankruptcy can be a private process, and the bankruptcy code was created to help those who are in over their head and need to manage their debt. Unless your neighbors plan on searching public records for your financial history, they won’t know if you went through a bankruptcy. And for many Americans, bankruptcy actually helps their falling credit scores and still gives them the chance to obtain a mortgage after their debt is discharged. In the long run, bankruptcy can help people learn how to make better financial choices and give them a chance to live financially healthy lives.

When done for the right reasons, bankruptcy can be a way to make your life better. So don’t hesitate if you find yourself falling into debt. You are not alone, and you are not at fault for asking for advice. You probably did not plan on being in debt, but that doesn’t mean there is nothing you can do. If you are considering filing for bankruptcy or have questions about debt relief, Call the Law Offices of Bruce Feinstein, Esq. today for a Free Consultation.

(718) 514-9770