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  • Facts versus Misconceptions about Bankruptcy (Part 2)

    If you are getting ready to file for bankruptcy, take some time to review these facts about bankruptcy so that you are fully aware of what bankruptcy entails.

    If you are getting ready to file for bankruptcy, take some time to review these facts about bankruptcy so that you are fully aware of what bankruptcy entails.

    As a continuation of Facts versus Misconceptions about Bankruptcy (Part 1), here are some additional bankruptcy myths that have been cleared up so that you have a realistic expectation of the process and outcomes associated with a bankruptcy case. Taking the time to review the facts and misconceptions about bankruptcy will be crucial to helping you understand what it takes to achieve a financial fresh start through bankruptcy. Additional common misconceptions about bankruptcy include the following:

    1. Myth: Filing for bankruptcy makes it appear that I’m not financially responsible.

      Fact: This is false. Many people file for bankruptcy for a number of different reasons, some of the most common of which include that they are going through a divorce, they have been unable to find a job for a long period of time (a case that many Americans face in the current economic downturn), and/or they get seriously hurt and become inundated with expensive medical bills. None of these situations means that borrowers filing for bankruptcy are not financially responsible, and bankruptcy is a viable solution anyone burdened by debt to achieve a financial fresh start.

    2. Myth: After a bankruptcy, it will be impossible for me to rebuild my credit.

      Fact: Although it will take some work to rebuild your credit after filing for bankruptcy, the good news is that you can boost your credit rating and be eligible for some loans in as little as one year after filing for bankruptcy, as long as you are diligent about rebuilding your credit. One thing you can do to rebuild your credit after bankruptcy is to take out a secured credit card with a small limit and regularly pay off this card (however, do not take out a credit card if you will not be able to make all payments on it on time – this will only further hurt your credit score).

    3. Myth: If I’m planning on filing for bankruptcy, I can run out and spend a bunch of money on my credit cards right before filing because all of the debt will be discharged anyways.

      Fact: Wrong. Jacking up credit purchases immediately before filing for bankruptcy can be viewed as committing bankruptcy fraud, a serious federal crime that could land you in prison for years.

    If you are struggling with debt and are looking for a financial fresh start, contact the trusted Colorado bankruptcy lawyers at The Law Office of Andrew McKenna. For more than 20 years, we have been successfully overseeing our Clients’ bankruptcy cases so they can resolve their financial issues as beneficially as possible. Our comprehensive legal knowledge coupled with our vast experience allows us to consistently and efficiently help our Clients achieve the best possible resolutions to their financial matters. For an evaluation of your case and expert advice regarding how to move forward, call us at (719) 201-4527.

    
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