Bankruptcy Myths

There are a variety of myths about declaring bankruptcy, most of which are designed to scare consumers away from filing for bankruptcy and continuing to deal with their overwhelming debt despite their inability to pay. Filing for bankruptcy isn’t necessarily as bad as previously thought and it can actually help you start over with a clean financial slate.


Myth #1 – If You Declare Bankruptcy, You Are Irresponsible With Your Money

Most people who declare bankruptcy aren’t irresponsible with their finances. These people have faced serious long term illnesses, job loss or have been through a divorce – all of which can deeply affect a person’s finances.


Myth #2 – Declaring Bankruptcy Will Ruin Your Credit Forever

Both chapter 7 and chapter 13 bankruptcies remain on your credit for 10 years. However, after the ten year period has passed, it is removed from your credit history. As long as you have not accumulated any debt within that time period, your credit will be free and clear.


Myth #3 – You Will Lose All Of Your Assets

There are many assets that are exempt from the bankruptcy liquidation process, if you go that route. An attorney can assist you with filing your valuable assets so many of them – if not all – are considered exempt by the bankruptcy courts.


Bankruptcy will not ruin your life like many people think, and filing for bankruptcy does not mean you’re admitting that you have been careless with your money. Call the Kalra Law Firm today to schedule an appointment to discuss how bankruptcy can help you start over financially and live the debt free life you’ve always wanted. (310) 325-9012.