3 Myths About Bankruptcy You Should Know
If you are thinking about filing for bankruptcy with the help of a company like Bauer & French Attorneys at Law, there is a chance that many of the myths that surround the issue of bankruptcy may be holding you back. This is why you should know what these myths are and the true facts behind them. Here are three common myths about bankruptcy that many people believe to be true:
Myth One: If You Are Sued By a Creditor, You Cannot File for Bankruptcy:
One common belief is that if you have been sued by a creditor, then it is too late for you to file for bankruptcy. However, this is not the case since filing for bankruptcy requires all creditors to cease their collection efforts and this includes pursuing with a lawsuit. There are very little situations in which a lawsuit may continue and it is rare to see a person who wishes to file for bankruptcy be unable to because of a creditor who wishes to sue.
Myth Two: You Can Never Inquire About a Loan Again:
Many people believe that once they file for bankruptcy, they will not be able to receive a loan ever again. This can easily prevent someone for filing for bankruptcy since they want to ensure that they have a chance to receive a loan for a car or house in the future. However, filing for bankruptcy never means that it is the end. Typically, once the case of bankruptcy is complete, a client can begin to inquire for a loan and they may be surprised at what offers they receive. You just need to be sure that you are making the payments to help improve your credit score.
Myth Three: You Can Lose Your Job:
Another reason people hesitate to file for bankruptcy is because they believe that it is going to cause them to lose their job. However, it is against the law for an employer to discriminate against an employee based on their financial standings. Besides, many employers understand that an employee who has filed for bankruptcy is taking the responsible course in approving their financial standing, which can make them a better worker because they want to continue earning money to improve their standings, as well.
By understanding what myths surround filing for bankruptcy, you can be sure that you are going to be able to feel more comfortable filing. Filing for bankruptcy isn't as bad as some people may make it out to seem.