Personal debt can come in many forms, each of which can be challenging to overcome. When considering debt, your first thought might lean toward overspending or mismanagement of finances. However, there are numerous factors that can contribute to financial struggles, some of which could be unavoidable.
Perhaps you recently lost your job or had a major surgery, you could be experiencing financial challenges that often accompany a loss of income or unexpected expenses. Although in some cases a person might be able to push through these challenging periods, in others, a long-term solution might be in order.
Common misconceptions regarding bankruptcy
You may have considered bankruptcy previously, but you could be hesitant to go through with it, perhaps in concern of the possible downsides. Although it is advisable to give a fair amount of thought to this decision, there are some common misconceptions regarding bankruptcy that might have skewed your opinion, such as:
- Loss of all assets: Although Chapter 7 bankruptcy involves the liquidation of certain assets, it does not mean that you will lose them all. Many of your assets could be exempt from the process, and speaking with an attorney for advice on this process could ease your mind.
- Repayment more beneficial: Perhaps you have attempted to keep up with payments to avoid bankruptcy, but if your monthly payments take up a sizeable portion of your income, you could be suffering a lesser quality of life just to make payments that may only cover interest.
- Thoughts of failure: Countless individuals experience financial struggles at some point in life, and studies suggest that one of the leading causes for bankruptcy is medical bills, which are in most cases unavoidable expenses.
- Financial future in shambles: A bankruptcy will have an impact on your financial future for a set period. However, if you are constantly unable to make payments on debt, the result could be much worse. Bankruptcy can give you a fresh start, which you can use to rebuild your credit and pursue a healthier financial future.
There are also myths regarding the type of debts that will be discharged in bankruptcy, but instead of researching these as well, you might find it advisable to speak with someone who has extensive knowledge of federal and Tennessee state bankruptcy laws for information on this topic.
After wading through the numerous myths regarding personal bankruptcy, perhaps you have decided it’s time to stop struggling with overwhelming debt. With so many key aspects to cover, and several available options, you might find it beneficial to seek guidance from a knowledgeable attorney. An attorney can address your financial concerns and needs, provide advice on available options and their potential outcomes, and assist you in pursuing the most favorable financial future possible.