Most people are terrified of the prospect of bankruptcy. Between the possibility of reputation damage and long-term financial ruin, many people are extremely reluctant to even contact a lawyer, much less pursue the actual possibility of filing for bankruptcy.

However, you should not be afraid. Most fears regarding bankruptcy are based more on myth than on fact. If you are in serious financial trouble, do not be afraid. Learn the truths and the myths surrounding bankruptcy so you can make smart decisions for you, for your family and for your future.

Myths: Busted

Here are some of the common myths surrounding bankruptcy, followed by the truth:

  • I will lose everything: You will NOT lose everything. Yes, you will have to liquidate some of your assets, but you will likely be able to hang on to some of your assets, and freedom from debt will allow you a second chance to rebuild your life.
  • Everyone will know: This is simply not true. Unless you are some kind of celebrity, most people won’t know. In some cases, the information about someone filing for bankruptcy isn’t even reported at all, and when it is, it is buried deep in the local papers where few readers even venture.
  • I will never recover financially: The truth is, you will have a chance to recover. It might take some time, but with wise, strategic choices, you will be able to obtain credit again and recover financially.

So, do not be afraid. The first step you should take is to talk with an attorney. Looking into the possibility involves no risk whatsoever, and by doing so, you can make a smart decision about what is the best choice for you. Knowing the possibilities is much better than being afraid of myths.