Facts about bankruptcy you need to know

There are several myths about bankruptcy that should be debunked, so you can have a better idea of how to proceed if you want to start with a clean slate. Before you speak to your attorney, understand these facts, so you can be well informed.

Everyone doesn’t know you’ve filed

Although you may see bankruptcy claims in the news, the truth is that for the average person, bankruptcies are quiet processes. The only people who will know about it are the people you tell and the creditors you owe money to. The court, your attorney and people close to you may know for legal reasons. It’s true that some newspapers still print the names of those filing for bankruptcy, but it’s not always the case.

Not all debts can be wiped out in bankruptcy

Unfortunately, not all kinds of debts are able to be eliminated in bankruptcy. Student loans, taxes and other kinds of debts may be secured, and that means you’ll have a hard time having them discharged in bankruptcy, if you can at all.

You won’t lose everything

Even though bankruptcy is presented as if you’ll lose everything you’ve owned, the point is not to make you start from scratch. Instead, bankruptcy courts allow you to exempt some assets, so you may be able to save your home, car and other assets that are protected.

If you are considering bankruptcy, you deserve to have all the information about debt relief and your options before you make up your mind. Our website has more information, so you can make an informed decision on your financial future.