5 Misconceptions About Filing For Bankruptcy In Michigan

By Seth Furman

There are many rumors floating around regarding bankruptcy and what happens after you file. I want to discuss some of these rumors.

What follows are 5 of the most common myths about bankruptcy.

1. If I file for bankruptcy, everyone is going to know about it. Most often the only people that will know about it are the ones you decide to tell and your creditors. Even though bankruptcy is a public proceeding, there are so many people and companies that file for bankruptcy, unless you are prominent, no one will run a press release about it.

2. I'm going to lose all that I own. Unfortunately, this is too often the showstopper for the people bankruptcy could help the most. Each state has it's own laws regarding bankruptcy and your rights, but all of them will protect certain assets of yours. Things like you house, clothes, retirement savings, etc. are protected. You can even keep your mortgage and car loan active if you can make the necessary payments.

3. I'm never going to get credit extended to me again. You will be able to get credit cards and credit again, however your interest rates will be higher. Getting car loans and mortgages may be more difficult than before, it is often advisable to make bigger purchases before you file as a result.

4. Filing for bankruptcy is a really difficult process. It really isn't a difficult process. With the assistance of bankruptcy lawyers in Michigan, you will discover the process is quite painless.

5. I must be a deadbeat if I have to file for bankruptcy. The truth is that lots of people file for bankruptcy and most of the time it's because of a big, life-changing event. Things like divorce, losing their job, getting sick are often to blame. Bills stack up and they get further and further behind.

When you decide that filing for bankruptcy may be right for you, the next step is to speak with bankruptcy lawyers in Michigan about your case. - 32519

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