Financial hardship is not an easy thing for anyone to face. Sadly, the reality is that millions of people in the United States are struggling just to cover their household bills. When debt becomes insurmountable, it can feel like there are no options available. However, there are strategies that can help to provide debt relief. One option is to file for bankruptcy.
People are often put off when hearing the term bankruptcy, because there are some negative stereotypes associated with this term. However, these misconceptions are often rooted in myths. Debunking these myths can help debtors to make truly informed decisions about their options.
Myth: A filer’s credit rating will never recover
While it is true that bankruptcy will impact your credit rating initially, the effects of this downturn won’t last forever. If bills are paid in a timely manner post-bankruptcy, your credit rating can begin to improve within just a few months. The misconception that bankruptcy is a “credit killer” is largely based on mistruths.
Myth: Bankruptcy always stems from reckless spending
While reckless spending can result in financial hardship, the vast majority of bankruptcy filers have not been reckless with money. Medical costs and unexpected job loss are two of the most common causes of bankruptcy, and these cannot be blamed on the filers.
Filing for bankruptcy is just one of several options available that can help you to address your debts. What matters is that you are proactive. Seeking legal guidance will give you a better idea of the route that will best suit your specific needs.