3 Biggest Myths About How Filing Bankruptcy Will Affect Your Life

3 Biggest Myths About How Filing Bankruptcy Will Affect Your Life

Myths about filing a bankruptcy case are everywhere and may prevent countless people from gaining the fresh start that bankruptcy offers. Here are 3 of the biggest myths about how filing a bankruptcy case will affect your everyday life. See also the 5 Biggest Myths About Filing for Bankruptcy.

Myth # 1: Filing for Bankruptcy is the Most Traumatic and Heart-Wrenching Experience
No one can deny the potential difficulty and trauma in admitting to a dire financial situation. However, at the time you seriously contemplate bankruptcy, you are already in the midst of a most trying and heart-wrenching experience.

Bankruptcy may put an end to the stress, aggravation, and harassment that you are feeling. After you complete your bankruptcy, you will likely be much relieved and feel better about your finances than you have in a long time. You will embark with a fresh start.

Myth #2: Filing for Bankruptcy Often Causes Family Strife and Divorce
More likely, it's the opposite. Constant anxiety about burdensome debt, creditors calls, the influx of bills, attempts to make do with little money, and the inability to do simple things your family once enjoyed cause family strife and problems. Overwhelming debt and the stress it produces can erode family relationships.

Bankruptcy helps eliminate financial stresses. Eliminate the financial stress and much of the household friction is likely to disappear. Bankruptcy closes the door on many types of debt. It is the new beginning that allows family to move on without the weight of their debts growing larger in their minds on a daily basis. The relief from the financial stress bankruptcy provides keeps peace in the home and gives relationships that may have frayed the fighting chance they need to become loving again.

Filing bankruptcy may be the wisest decision you can make for you and your family so that you can resolve your debt issues and make a fresh start in your life rather than continuing to ignore or avoid your creditors.

Myth #3: Everyone Will Know You Filed for Bankruptcy

Few people will ever know you commenced a bankruptcy unless you decide to tell them. Although bankruptcy is a public, legal proceeding with a public record and thousands of people file bankruptcy each day, most people do not keep track of the filers and very few publications have the space, resources, or desire to publish bankruptcy filings. The exception is if you are a prominent person in the community, a celebrity, or executive of a well-known corporation about whom or which the media decides to publish a story. Most people are busy with their lives and aren't concerned with following bankruptcy cases.

If you have borrowed money from your neighbors or relatives, then they-as your creditors-will know and will be sent notice of your bankruptcy filings. Except for that, the chances are very good that the only people who will know about your bankruptcy will be you and your creditors.

To learn more about these and other myths about bankruptcy and how to decide whether or not bankruptcy makes sense for you, read The Road Out of Debt: Bankruptcy and Other Solutions to Your Financial Problems or visit www.roadoutofdebt.com.

Read more articles about consumer debt by Ted Connolly, co-author of The Road Out of Debt