Myths and Truths About Chapter 7 Bankruptcy

There is a significant stigma attached to bankruptcy that leads people to believe that filing a claim means that one is either poor or irresponsible with finances. In addition, common misconceptions tend to follow that bankruptcy leads to forfeiting everything you own or that you are somehow gaming the system to your advantage.

These are myths that can be very far off from reality. The truth is that bankruptcy itself is not a reflection of your financial or social standing. People and companies of all levels of income regularly file for bankruptcy. What most people fail to understand is that bankruptcy is a tool. It provides a reasonable solution to a problem that anyone could encounter — usually after a string of bad luck.

Bankruptcy is about getting a fresh start. The requirements for a bankruptcy claim have less to do with your financial standing and more to do with your debt. Individuals filing for bankruptcy typically do so as a means of managing debt that has become problematic. Far from being a shameful process, it is often the most responsible action for individuals with excessive or unmanageable debt. It’s the first step on the path toward future financial success.

If you are considering whether or not bankruptcy is the right move for you, it’s important to seek the guidance of a financial professional or bankruptcy lawyer in Georgia. Crafting a sound financial plan for the future takes some hard work and a detailed understanding of the laws related to debt repayment. If your debt has become unmanageable, you should address the problem before it truly gets out of hand.