Many people who don’t understand bankruptcy believe that bankruptcy means loss. They think that bankruptcy means losing all of your material things: your home, vehicles, and your stuff. They also tend to think that bankruptcy means losing non-material things: your pride, your dignity, and your financial security.
Both of these perceptions are wrong. And, really, in many cases bankruptcy means the exact opposite. It means keeping the things that are most important to you. It means regaining your financial footing and reclaiming control over your life.
A common myth is that when a person files for bankruptcy they end up homeless or they lose their only source of transportation or a bunch of other things. This just is not true. Most who file for bankruptcy don’t lose their house or car or any assets!
Another misperception is that bankruptcy tanks your credit score irreparably. That once someone has filed for bankruptcy, they are financially doomed and that they will never be approved for another loan or credit card or housing application again. Again, this is so wrong! Yes, it is true that your credit score may take a hit when you file for bankruptcy and that a bankruptcy is on your credit report for ten years. But, a bankruptcy wipes away all of the other black marks on your credit score and this may actually give your credit score a boost! There are many factors that make up a credit score and your credit reports. A bankruptcy would be a relatively small dent compared to all of the other aspects of your credit.
The bottom line is that bankruptcy isn’t the end-all-be-all that everyone makes it out to be. Really, bankruptcy is a lifeline that is designed to protect those who file and the things that matter most to them.
Conclusion
Bankruptcy is not a loss! Request a consultation with MN’s NICEST bankruptcy attorneys at www.kainscott.com and start protecting what matters the most.
