Bankruptcy is a challenging last resort some individuals try to avoid. Not only is it a daily occurrence, but it has also become a form of resolution to clear outstanding debt. However, some claims can instill fear into someone who is unaware of the procedure. If you require assistance filing for bankruptcy, contact our Memphis, TN bankruptcy lawyer today. Read further for several infamous myths that remain widespread.

  • Myth #1: It’s Difficult to File

False: Declaring bankruptcy isn’t as impossible as you may think. However, you could unknowingly file under the wrong chapter or cite property exemptions incorrectly without the proper knowledge. Therefore, it would be best to seek a legal professional to help you understand the filing process and then assess an alternative that fits your situation.

One suggestion is to contact a bankruptcy law firm in Memphis TN. You can connect with an experienced, reputable attorney who can help you find an effective solution.

  • Myth #2: It Guarantees Jail Time

False: Sometimes, debt collectors use threats of imprisonment to spur a filer to pay off their debts. Legal action, wage garnishment, and property holdings are three common scare tactics that debtors use. In reality, you cannot face jail time for relieving overdue bills or mortgage. A lawyer at a bankruptcy law firm in Memphis TN can explain fraudulent crimes worthy of incarceration to clear any false claims.

  • Myth #3: It’s a One-Time Opportunity

False: Multiple filings are possible despite complex bankruptcy laws. Some individuals file for the second or third time due to unexpected incidents that affect them. Job loss, divorce, and hospital bills are only a few issues that can push someone to choose liquidation more than once.

  • Myth #4: It Indicates Financial Irresponsibility

False: Some individuals turn to the advantages of liquidation to put their situation back into perspective. Whether you’re facing hardship or filed by choice, opting for monetary relief doesn’t indicate that you’re thoughtless and carefree about your finances.

Instead, taking such action shows you’re attempting to start over to improve your circumstance. Before contacting a bankruptcy law firm in Memphis TN ensure that you’ve accepted that filing is your last resort.

  • Myth #5: It Prevents Credit Card Approval

False: Although you can expect limited credit access from seven to ten years, the consequence isn’t final, nor does it restrict you from obtaining a card. You can still fill out an application and qualify, but you may have limited options. A secured card is a reasonable alternative to help you raise your score and remove delinquencies. If you begin receiving an influx of offers, most likely, they’re suggestions initiated by creditors.

  • Myth #6: It Can Damage Credit Permanently

False: While your credit rating could decrease by a few points, the result is only temporary over a short period. Additionally, you may increase your credit score by filing for bankruptcy.

Contact Our Memphis Bankruptcy Lawyer Today

Liquidation can eliminate any debt and previous unpaid payment on your credit report under chapters 7 and 13. If you are unsure about filing for bankruptcy or are looking for legal assistance, contact Darrell Castle & Associates today to help decide which chapter is appropriate for you.