Even though consumers in Louisiana can put the recession behind them, some may experience unanticipated events such as employment loss or medical emergencies that may ruin their finances. The most efficient way to remedy the situation may be personal bankruptcy, but many people associate it with age-old myths that are inaccurate, and they deprive themselves of a fresh start. Bankruptcy might be seen as a friend in need because it can stop creditor harassment, lawsuits, threatening letters, repossessions and more.
Some people fear being shunned by friends if they file for bankruptcy. However, millions of U.S. consumers do the same and survive. First, a filer need not broadcast the news that he or she filed for bankruptcy, and second, facing financial problems does not change a personality and should not affect friendships with people who might even have their own unique problems. Another myth is that bankruptcy filers land in the poor house. Although they may lose some assets, bankruptcy exemption may protect essential items, such as a family residence, a car and more.
Although the fact that bankruptcy will hurt the filer’s credit score is correct, the belief that it will be ruined forever is a myth. In truth, bankruptcy is a fresh start that will include valuable financial counseling and a clean slate when it comes to unsecured debts, such as credit card and medical debts. Furthermore, banks and credit card companies are not altogether unsympathetic toward bankruptcy survivors.
One thing that is not a myth is the fact that bankruptcy is not a breeze and will not rate as one of the most exciting experiences of a person’s life. It will be stressful, but, fortunately, nobody needs to navigate a bankruptcy without professional guidance. An experienced Louisiana bankruptcy attorney can explain the process and prepare the client for what will follow. A lawyer can also advocate for the filer during the creditor’s meeting and other proceedings en route to renewed financial stability.
Source: mainstreet.com, “Common Bankruptcy Myths Debunked“, Brian O’Connell, Accessed on Jan. 20, 2017