Common Misconceptions About Filing for Bankruptcy Protection

By jacob

There’s no way around it. Money is hard to manage. There is a common misconception that most people file for bankruptcy because they have somehow mismanaged their money. In reality, this is not the case. In actuality, the vast majority of people file for bankruptcy due to unforeseen medical expenses. While we can argue about the morality of this, it is important to take a look at what happens when someone files for bankruptcy protection. While it is important to hire a professional bankruptcy attorney, there are a few other common misconceptions that people have when it comes to filing for bankruptcy protection.

Misconception: You Will Lose Everything

The first misconception that we need to highlight is the mistake that you will lose everything. Many people believe that they are going to lose everything because it is going to have to be liquidated to pay their expenses. This is not the case. There are plenty of situations where people are still able to protect a significant proportion of their personal property. This includes a car, their home, and numerous other personal items. It is important for everyone to protect as much as possible during the bankruptcy process, which is where a lawyer can be helpful.

Misconception: All of Your Debt Will Go Away

On the other hand, there is also another common misconception that many people think all of their debt is going to go away. This is simply not the case. While it is true that a significant proportion of someone’s that can be discharged in bankruptcy, not all of it is going to be discharged. For example, there are many types of student loans that are not dischargeable in bankruptcy. Of course, people want to discharge as much of their debt as possible, which is another area where a bankruptcy attorney can be helpful.

Rely on the Help of a Bankruptcy Lawyer

The bankruptcy process can be confusing. Everyone wants to achieve the best outcome possible for their financial future. This is where working with a trained legal professional is important.