There are numerous reasons, both personal and professional, why individuals may opt to take the route of bankruptcy. Often, filing for bankruptcy is viewed from a negative perspective. However, bankruptcy can actually be the best option for people to rebuild their lives.
Unfortunately, there are some myths in circulation that result in people being misinformed on the issue. It could be in your best interests to obtain as accurate a picture as possible when it comes to bankruptcy. Outlined below are three common misconceptions about bankruptcy in Tennessee.
Bankruptcy will ruin your credit for good
While bankruptcy will remain on your credit report for a number of years, it may be less detrimental to your credit than maintaining debts that there is little chance of you paying back. Bankruptcy could actually provide an opportunity to slowly start rebuilding your credit again. Simple measures such as paying bills on time and making small transactions can begin to restore your credit over a period of time.
People who file for bankruptcy have always been irresponsible
It is a common misconception that those who file for bankruptcy are always irresponsible with money. There are numerous ways that a person can land in financial trouble, through no fault of their own. For example, job loss or family bereavements can result in significant financial pressure. In fact, filing for bankruptcy might be more responsible than racking up further debt that has no prospect of ever being paid back.
Bankruptcy will make you homeless
The prospect of being homeless after declaring bankruptcy can be a great source of stress. However, depending on which bankruptcy option you pursue, keeping your home could be a possibility.
Obtaining the most reliable information on bankruptcy may be in your best interests. If you are facing financial difficulties in Tennessee, it is important to remember that you are legally protected.