Myths Abound When Filing for Bankruptcy

When filing for Dallas bankruptcy, everyone seems to be an expert or guru. But with so many pieces of advice being thrown at you, who do you believe? Well here is a news flash: not everything you hear is true. In fact, a large majority of the information you read on internet message boards or hear from the neighbor next door are simply myths that have taken off. Filing for bankruptcy is an intricate and sometimes lengthy process in and of itself, so don’t make it any more difficult by listening to the unnecessary noise around you. Here are some of the common bankruptcy myths you are likely to hear:

You Will Lose Everything You Own

This is one of the biggest myths around, but don’t let it stop you from filing for bankruptcy. Different bankruptcy codes and procedures allow you to keep different assets, so there is no standard on what goes and what stays, but by no means are you going to lose everything to your creditors.

It’s All the Same

All bankruptcy options are not the same. The big three, chapter 7, chapter 11, and chapter 13, all offer quite different features for those filing for bankruptcy. Chapter 7 is one of the most popular ways to file, being the cheapest and quickest. The other two offer their own unique set of features and advantages as well.

Chapter 7 is a Redo

While filing for chapter 7 bankruptcy affords you the opportunity to start fresh, there are some debts that it cannot wipeout. Chapter 7 cannot do anything about student loans, child support, alimony, or legal settlements.

There are dozens of other myths around, so make sure to do your research and discover what the truth really is. Filing for bankruptcy can be an exciting opportunity for a fresh new start, but make sure you understand what it actually entails.