Avoiding Bankruptcy Myths

Many people misunderstand the bankruptcy process, from the perceived negative connotations about it to the filing process and options. Unfortunately, these misunderstandings and misconceptions are largely due to widespread myths about the process and about how it affects you or your family. Fortunately, with the right information, you can be better informed about whether or not bankruptcy could help your financial situation.

At Hong Law, PLC, we know that many people in Muscatine are misinformed about bankruptcy. Fortunately, by debunking certain common myths, we can help you learn more about how this legal option may be the best path for you and your family to get back on solid financial footing.

Myths about Bankruptcy

There are so many untruths out there about bankruptcy that confuse debtors and frighten them into not taking action to settle their debts. Some of the most common myths include:

• Bankruptcy ruins all hope of financial security and independence
• I will ruin my spouse’s credit if I file for bankruptcy
• Filing for bankruptcy means that I will lose everything I own

None of these myths of bankruptcy is actually true. Bankruptcy will affect your credit for a certain amount of time, but is actually the first step of getting out of debt and re-securing financial independence; your spouse does not have to file for bankruptcy just because you do (you can file separately); only Chapter 7 bankruptcy involves asset liquidation and you still will not likely lose all of your property and assets.

Contact a Bankruptcy Attorney in Muscatine

If you are thinking about bankruptcy and want to know more about what is myth and what is true, the attorneys of Hong Law, PLC, can help you sort through the facts and rumors. Contact our offices in Muscatine today at (319) 294-5853 to learn more about bankruptcy and how it can be beneficial for you.