Submitted by Rachel R on Fri, 06/16/2017 - 10:25am
Don't be confused by bankruptcy myths
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Myths and misinformation about bankruptcy abound. You can find false information about bankruptcy online, from friends and family, and even from poorly researched and written books. Most people see Wilmington bankruptcy as an end – an unfortunate conclusion to a financial crisis that has wrecked their lives. In fact, bankruptcy is a start, not an end. It’s an answer to a serious problem and can be a life-changing solution for those that embrace and make the most of it. Here’s a look at some of these top myths about bankruptcy dispelled.
#1 Wilmington Bankruptcy Ruins Your Credit for 10 Years
Some websites will tell you that bankruptcy wrecks your credit and will continue to do so for a decade because that’s how long it stays on your credit report. The truth is that, yes, bankruptcy will remain on your credit report for seven to 10 years. But the further away from the date you filed bankruptcy, the less it matters in calculating your score. Also, if you were deep in debt, maxed out on credit cards and missing payments, your credit score was likely in a free fall. Filing bankruptcy can stop the fall and allow you to reset and begin rebuilding. Most people that choose bankruptcy see their FICO scores rise, not fall, a few months after bankruptcy.
#2 Wilmington Bankruptcy Can Stop You From Getting a Job
If you’re job hunting, are in the military or a government contractor with a security clearance, filing bankruptcy to deal with debt can benefit your job search, help protect your clearance and secure opportunities you may not get if you’re stuck with excessive debt. Employers can view a ton of debt as a sign that you might be tempted to embezzle. When it comes to positions with a security clearance, too much debt can signal that you might be open to a bribe or blackmail. Plus, out of control debt can be interpreted as a warning that you may be irresponsible. That’s not fair, but it can happen. Filing bankruptcy clears up old debt and can benefit your job hunt.
#3 Wilmington Bankruptcy Will Take All Your Assets
Some people have a false image in their minds that when you file bankruptcy, a large truck backs up to your house and men in coveralls haul away everything you own. That won’t happen. North Carolina bankruptcy exemptions allow you to protect clothing, furniture, computers, household goods, your car, and a sizeable amount of equity in your home. If you have expensive art work or a pile of diamonds, that can complicate your bankruptcy, but that’s not the case with most bankruptcy filers. Bankruptcy exemptions allow you to protect a wide array of assets and even some cash in the bank. Plus, your retirement account is 100% shielded in Wilmington bankruptcy.
#4 Wilmington Bankruptcy Will Block You From Getting Credit Again
This ties back to the myth that your credit will be ruined for a decade. It’s just not true. Once you get your bankruptcy discharge, you can take strategic steps to rebuild your credit score and, in many cases, it rebounds on its own naturally because you don’t have delinquent debt dragging down your score month after month. In fact, just a few months after a bankruptcy discharge, it’s common to have credit card offers filling your mailbox. You may have to wait a little longer to qualify for an auto loan with a favorable interest rate, and a mortgage is best pursued a couple of years after your bankruptcy discharge. But the truth is, bankruptcy can help (not hinder) as you rebuild credit and FICO score.
If you’re deep in debt, don’t let fear of these myths keep you from pursuing debt relief. To find out more about the benefits of Wilmington bankruptcy, contact the Law Offices of John T. Orcutt. Call +1-919-646-2654 now for a free Wilmington bankruptcy consultation at one of our convenient locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro, Garner or Wilmington.
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