When you’re in financial trouble, your friends and family sincerely want to help. Everyone seems to have an opinion about what you should do to improve your situation and find relief. You can find plenty of “advice” on social media and in the “news,” but how much of it is true and applicable to your financial circumstances?
The unfortunate reality is that misinformation, myths and even “fake news” about bankruptcy can hurt you, badly. If you make poor choices about your debt — or you fail to take action that will help — your family can suffer. So how do you protect yourself from myths and false information about bankruptcy?
Some of the many common myths about bankruptcy (and debt-relief alternatives to bankruptcy) pertain to:
- What will happen to your credit (and when, and for how long) if you file for bankruptcy
- Mortgage debt, foreclosure and “saving your home”
- Differences and similarities between Chapter 7 and Chapter 13, and when to use one instead of the other
- Bankruptcy and divorce
- How to time your bankruptcy filing
- Discharging student loans
- Different kinds of tax debt
- Medical debt and credit card debt
- Debt settlement companies
Talk to a professional ASAP
Bankruptcy can be complicated. Your financial situation is unique. Amateurs simply don’t have the knowledge or experience to help you choose the most effective debt relief solution.
What you do now can affect your family for years. That’s why it is critical to make careful, informed decisions with the help of a professional. Depending on a number of factors, bankruptcy could be life-changing for you and your family, or it could be completely inappropriate and unnecessary.
If you are considering bankruptcy as a means of debt relief, talk to a bankruptcy attorney who knows the facts, understands the law and can possibly help you apply the law to your advantage. You may be pleasantly surprised at how helpful the truth is.