Debunking 5 Common Misconceptions About Bankruptcy

Choosing to file bankruptcy can be a highly emotional experience. After suffering beneath the weight of unmanageable debt, bankruptcy may offer relief and a clean slate, but there are also several negative connotations associated with bankruptcy. If you think bankruptcy may be the best solution to help with your financial hardships, you should be aware of the most common misconceptions about bankruptcy so you can move forward with the process with as much knowledge as possible. 

The Law Offices of Daryl L. Jones, P.A, is a Florida real estate law firm dedicated to helping clients considering bankruptcy. Our goal is to ensure that our clients feel confident about their decision to file bankruptcy by ensuring we debunk any misconceptions that may be holding them back from moving forward. 

5 Misconceptions About Bankruptcy in Florida

Filing bankruptcy is a big decision that can leave you feeling anxious as you assess the effects this choice may have on your future financial situation. You have likely heard various ominous misconceptions concerning what will happen if you decide to file bankruptcy. However, many of these rumors are simply not true. The most common misconceptions about bankruptcy include:

Individuals Who File Bankruptcy Are Deadbeats

The idea that all individuals who file bankruptcy are deadbeats or freeloaders is entirely misguided. Your creditors know there are many reasons a person may suffer financial hardships that could lead to high amounts of debt. Some examples of why a person may be unable to pay off his or her debts are:

  • Job loss
  • Divorce
  • Costly medical bills

If you require relief from your crippling debt, you should not be ashamed to file bankruptcy. It is a commonly used method to allow people to reset their financial situation. 

You Lose All Property After Filing Bankruptcy

While you may lose some of your property when filing bankruptcy, it is not true that you will definitely lose it all. Depending on the type of bankruptcy you file, chapter 7 or chapter 13, you may be able to keep some of your assets. This is one reason that it is crucial to work with a Florida bankruptcy attorney who will work to protect your rights and your property to the best of his or her ability throughout the bankruptcy process. 

You Will Be Fired From Your Job

The law prohibits employers from discriminating against an employee due to bankruptcy. If you are fired from your job due to bankruptcy, you should speak with a bankruptcy attorney as soon as possible to help you get justice. 

You Will Never Be Able to Establish Credit Again

It is no secret that your credit will take a significant hit following your bankruptcy. However, if those who remain diligent about paying their bills on time and who manage their finances more responsibly, frequently recover their credit rating in a mere two years. You too may be able to recover your credit rating in as little as two years.

You Have to Be Broke to File Bankruptcy

While bankruptcy is often recommended as a last resort when experiencing financial hardship, you do not need to reach the point of being completely broke to file. Bankruptcy is an opportunity to seek relief whenever a person can no longer pay back his or her debt, but that does not mean you have to have zero dollars in the bank. If you have questions about whether you are eligible to file bankruptcy, you should speak with a trusted bankruptcy attorney. 

Contact a Florida Bankruptcy Lawyer Today

The choice to file bankruptcy should not be taken lightly. However, while bankruptcy is a big decision, it is not the end of your financial well-being. Even though bankruptcy can negatively impact your credit, it can also provide much-needed relief for those struggling with debt. 

To get help with the bankruptcy process, contact Attorney Daryl L. Jones of The Law Offices of Daryl L. Jones, P.A. Our real estate law firm has over 30 years of experience helping clients in Florida struggling with debt. For a free initial strategy session, contact us here or call 305-969-3602.

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