Connecticut residents who are heavily in debt might consider turning to bankruptcy. Some may be reluctant to file due to some myths. However, when you learn that these things are only misconceptions, it can make you feel more comfortable about the process.
You’ll never get credit again
One of the most common bankruptcy myths revolves around your ability to get credit. It’s a myth that if you file, you’ll never be able to apply for credit again. In reality, you may receive offers for secured credit cards after a bankruptcy discharge.
Your credit will be permanently damaged
Some people believe if you file for bankruptcy, your credit will permanently be damaged. In reality, you can work toward repairing your credit after filing. You can even get valuable information on preventing debt, which can help you improve your credit score and creditworthiness.
You can eliminate all debt
A huge bankruptcy myth is that you can eliminate all debt when you file. The reality is that you can only do that with unsecured debt such as from credit card usage. Debt that is secured like child support payments cannot be discharged.
You will lose everything if you file
It’s a common myth to believe that if you file for bankruptcy, you will lose all of your belongings and valuables. This is not true at all. You are able to keep most of your property and even the most important things such as your home and vehicle. Filing for Chapter 7 bankruptcy allows you to hold onto your prized possessions.
You can’t file more than once
Another bankruptcy misconception says that you can’t file more than once. However, by law, consumers are allowed to file more than once as long as they do so after a certain length of time. You can file Chapter 13 four years after getting a discharge with Chapter 7. You can file for Chapter 7 bankruptcy six years after getting a discharge through Chapter 13.
Myths can often be scary. Having them debunked can ease your mind about possibly filing for bankruptcy.