For many people who have fallen into immense debt, bankruptcy may be the only way out. Unfortunately, many delay in filing for bankruptcy due to the various myths that surround the practice.
There are some things you should expect after filing. For example, your credit score will take a hit. Most find their scores will drop by at least 200 points. However, there are plenty of things you think will happen that actually will not.
Myth #1: You will never be able to own anything ever again
A lot of people assume they will lose everything in bankruptcy. In actuality, bankruptcy may be the only way you can retain your house and car when in severe debt. Going forward, you will still be able to purchase another house in the future. No laws exist that prohibit you from owning property after bankruptcy. After you fully discharge your bankruptcy, you will find applying for loans will be as simple as it was before you filed.
Myth #2: Bankruptcy will destroy your credit score forever
You can certainly expect your credit score to take a hit immediately after filing. Fortunately, you can take action right away to quickly start building up your score. You can still qualify for credit cards after bankruptcy. While you need to be careful about how much you spend, paying off a credit card every month is a viable way to gradually increase your credit rating.
Myth #3: Everyone will know you have a bankruptcy on your record
You may feel embarrassed about having to file for bankruptcy, and that is completely natural. Unless you are a celebrity, you will generally not have to worry about this. It is true your bankruptcy will be part of the public record, but numerous people file for bankruptcy every year throughout Arizona. There is a high likelihood no one will ever find out if you do not tell them.