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The idea of bankruptcy tends to evoke feelings of dread and shame. It is often associated with financial irresponsibility and loss.
What many people fail to realize is that rather than being something to avoid and be mortified by, bankruptcy is a valuable tool that exists to aid individuals in eliminating overwhelming debt. This is in part due to the many misconceptions floating around about it.
- Bankruptcy Is Equivalent To Permanent Credit Death
Your credit score is not going to plummet to eternal lows. While it may see an initial decline and the bankruptcy may stay on your report for a while, it is not a forever thing. Recovery can happen. Lenders are still often willing to extend credit to you even after a bankruptcy.
- Bankruptcy Is Equivalent To the Loss of Everything You’ve Ever Worked For
There is more than one type of bankruptcy. One of the greatest fears about bankruptcy is that it means the bank will take away your car, your home and any other personal asset it can lay hands on. While in some cases you may lose your vehicle or house, depending on the kind of bankruptcy you file for (a bankruptcy attorney Columbia MD can offer more detailed information about each one) you may not have to give up either.
- Spouses Must File Together
Even if you are married, you can file for bankruptcy as a separate entity from your spouse, and your spouse can likewise file separately from you. Your filing for bankruptcy does not mean your spouse has to as well and vice versa.
Bankruptcy is not something to hide or run away from. It is nothing more than a very useful tool. If used correctly it is one that can help you discharge debt and find your way to a better financial future.
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