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If you’re having trouble keeping up with your debts you may be considering filing bankruptcy. For many living in debt in North Carolina, this can be a great solution. But you may be having second thoughts because you’re worried about the stigma of filing, possible adverse outcomes and other things that we’ve all heard associated with bankruptcy. Don’t get bogged down in the – check out these five must-read bankruptcy myths and learn the truth about what bankruptcy can do for you.
Myth 1: Bankruptcy Is a Sign of Financial Carelessness
I know it might seem this way, but it’s just not true. Sure, we all know people that get in over their heads with credit card debt because they have deplorable spending habits, but that’s not the profile of your typical bankruptcy filer. Instead, what I see most often is that bankruptcy is driven by major negative life events such as long-term unemployment, break up of a marriage or a devastating accident or illness. All of these circumstances can make it impossible for you to pay your debts. None of these are signs of irresponsibility. They just happen. It’s not a sign of failure.
Myth 2: Everyone Will Know You Filed Bankruptcy
I know embarrassment over finances can be a huge concern for people, but if you let your debts continue to spiral out of control you’ll end up red faced either way. If your home is foreclosed on, your neighbors will know. But if you can save your home, do a short-sale or surrender it in a bankruptcy, you can spare yourself that stress. It’s true that bankruptcy is a matter of public record, but to search the listings you must pay for access. Your friends and neighbors should have no idea unless you tell them or they read bankruptcy court records for fun - and who does that?
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Myth 3: Bankruptcy Ruins Your Credit and Your Future
I know you may be concerned about the hit to your FICO score, but consider this. If you can’t pay your bills, your credit rating is headed downhill anyway. And yes filing a bankruptcy will result in a drop in your overall score. This will be offset somewhat by the fact that your individual accounts will no longer be showing delinquent with a balance and you’ll be able to start rebuilding your credit within six months to a year after filing and get it back up where it should be so you can get affordable financing in the future.
Myth 4: You Need a Pile of Cash to File Bankruptcy
I know you may be in a dilemma if you can’t afford to pay your bills but then you also feel like you can’t afford to file bankruptcy. A reputable North Carolina bankruptcy attorney like John T Orcutt will offer financing options that will allow you to get the financial fresh start you need in an affordable manner. Depending on your circumstances, you may qualify for a zero down plan or other payment alternatives. And as soon as the bankruptcy is filed, you should have some more room in your budget to afford the filing and attorney’s cost associated with getting this much-needed fresh start!
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Myth 5: Bankruptcy Means You Will Lose Your House, Car and Other Assets
I know you may be worried that if you file bankruptcy you will lose your house, car, TV, furniture, jewelry, etc. The truth is that there are exemption amounts for furniture and household items that are very reasonable. Unless you've got expensive art work on your walls and an enviable collection of diamonds, you should be able to keep most of your stuff. If you are current on your house note and don't have a ton of equity (there's a threshold set per state) you should be able to keep it. If your car is a normal one (not a Bentley that you own free and clear) you should be able to keep that as well!
Call Today for Information on An Affordable NC Bankruptcy Filing
When we hear the word “bankruptcy” we may think it's a negative thing. But in fact, what I’ve seen is that it’s an opportunity for a financial fresh start that can radically improve your life. To find out what a well-timed bankruptcy filing can do for you, contact the law offices of John T Orcutt today for a free consultation on your debt dilemma. The sooner you contact us, the sooner you can get a financial fresh start - and that’s no myth!