As any Fort Worth bankruptcy attorney will tell you, there are a number of bankruptcy myths circulating around the internet and corner street cafes. For those considering filing, it is important to understand what is fact and what is fiction.
1) Everyone Will Know I Filed for Bankruptcy
Because of the mainstream media and plethora of online financial journals, people seem to think that every bankruptcy will be publicized and promoted. But unless you are a famous person or large company, odds are your bankruptcy will go completely unnoticed by the public. The only people that will know about it are your bankruptcy attorney, creditors, and the people you choose to tell. While bankruptcy is a great opportunity to leave troubles in the past and press on to a solid financial future, you don’t have to worry about everyone else knowing your business.
2) Creditors Can Still Harass Me After Bankruptcy
As your bankruptcy attorney will tell you, this is another popular myth. As soon as you file for bankruptcy, your creditors will be notified that they are required by law to stop all collection efforts. The formal name for the law is the “Automatic Stay,” and it prohibits creditors from collecting any of your assets during the bankruptcy process.
3) Bankruptcy Will Hurt Me for Ten Years
This is also a popular bankruptcy myth. While a bankruptcy will stay on your credit report for ten years, this does not mean it will ruin your life. In reality, you should have no problem reestablishing your credit in 3-5 years.Your bankruptcy attorney can point you in the right direction for money management assistance.
Don’t let the many bankruptcy myths you hear scare you away from filing for bankruptcy. Do your research and speak with your Fort Worth bankruptcy attorney to decipher the facts from fiction.