Bankruptcy is one of those areas where a lot of people are willing to give advice without knowing what they are talking about. Following the freely proffered wisdom of bar stool or water cooler experts will not help your financial situation. It may make it a whole lot worse.
Here are some frequently repeated nuggets of wisdom that are false:
You’ll never work again
Employers cannot fire you solely on the basis of bankruptcy. Government employers cannot refuse to hire you because of it, either. Most employers know plenty of people who have filed for bankruptcy and will realize that it is no indicator of someone’s suitability for the job. In fact, bankruptcy may be seen as the responsible choice, since it shows you are dealing with your debt in the only legal way that you can.
You won’t be able to get a loan or credit card
There are always lenders willing to help more people get into debt. If easy borrowing was what led you into financial problems in the first place, think carefully before borrowing again. Make sure you have learned your lessons and know how to handle credit. The terms lenders initially offer you will be far stricter than before, but you can use them to rebuild your credit score.
You’ll lose everything
You might if you do not deal with your situation soon. By filing for bankruptcy, however, you take hold of your situation before the bailiffs empty your house.
Once you file, creditors need to stop contacting you, which can be an instant source of relief for many debtors. Bankruptcy really isn’t something to be feared. With the right legal guidance, you can get your finances back on track and get a fresh start.