Filing for bankruptcy when you are experiencing stressful and burdensome financial pressure can be a good way to eliminate or reduce your debt and reclaim financial independence. Unfortunately, however, there are a lot of myths circulating about the bankruptcy process that deter people from considering this often extremely helpful option. Our team at Hong Law, PLC knows that many Clinton residents have false beliefs about bankruptcy, and we want to help disprove the following myths, allowing people to have the information they need to pursue all their options.
MYTH: If I file for bankruptcy, I will destroy my spouse’s credit.
TRUTH: Actually, you are often able to file for bankruptcy separately from your spouse, so his or her credit may not be affected whatsoever.
MYTH: Bankruptcy = financial death sentence.
TRUTH: The worst thing a debtor can do is nothing when facing hefty debts and financial strain. Bankruptcy is a positive step in the right direction for reclaiming your financial independence, not to mention that its effect on your credit often lessens, or even disappears, over time.
MYTH: Bankruptcy will make me lose everything I own.
TRUTH: In bankruptcies that do not involve asset liquidation (like Chapter 13), you would be able to retain control and possession of many of your assets. Additionally, even in Chapter 7 bankruptcy, people are often able to keep many of their possessions.
Understanding the realities of bankruptcy and your options can help you pursue the financial path that is right for you and your situation.
Contact a Bankruptcy Attorney in Clinton
If you are under huge financial strain and are considering bankruptcy, an attorney from Hong Law, PLC can answer any questions and address any concerns you have. Call (319) 294-5853 today to talk through your options with us.
Coralville, IA 52241
Phone: (319) 354-1804
Map to our Coralville Office