Myth #1: Bankruptcy Ruins Your Credit.
It’s common to hear people say bankruptcy will ruin your credit. But if you’re at the point of considering bankruptcy, they don’t understand the state of your credit right now.
People consider bankruptcy because of debt they pay. And what hurts your credit score almost more than anything else? Missed or late payments on important bills. So if you’re deep in debt and considering bankruptcy, then your credit score probably already reflects that.
Bankruptcy offers you the opportunity to get rid of that debt through Chapter 7 or Chapter 13, depending on your specific situation. Then once the bankruptcy is complete, you have a clean slate to with which to rebuild your credit score the right way.
At Darrell Castle & Associates, our clients receive free access to 7 Steps to a 720, an online credit restoration program that helps users rebuild their credit score to an A+ rating in one year, even after a bankruptcy.
Myth #2: Bankruptcy Steals from Your Creditors.
Companies figure bankruptcy into all of their costs and interest rates. Your specific situation never comes as a surprise to them. They plan for it. Even though it brings complications in the moment, they know bankruptcy makes you better able to afford things later and helps the economy as a whole.
Additionally, in Chapter 13 you lump your debts into an affordable repayment plan. You actually make payments on your debts that you couldn’t afford to make beforehand. Many creditors appreciate this alternative.
Myth #3: Bankruptcy Is Just for the Financially Irresponsible.
The federal government designed bankruptcy for anyone who struggles financially for various unfortunate reasons. This can include:
- Medical debt
- Credit card debt from an emergency
- And more
But even if you have been financially irresponsible, debt should never ruin a person for the rest of his or her life. It offers forgiveness and a fresh start.
Help with Bankruptcy
If you’re struggling with debt for one reason or another – you lost your job, got sick, made a bad financial decision – and you want to know more about your options, our free financial consultation is perfect for you.
Even after reading this, you may still be scared to file for bankruptcy. You may be scared of what people will think about you, or you may think it’s not right for you. I encourage you to schedule an appointment and just talk to someone. At the very least, you’ll get a detailed look at your finances and learn where you truly stand, for free.
Call (901) 327-2100 today to schedule your appointment. Or you can fill out one of the contact forms on this page to have someone contact you.