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Bankruptcy Myths

There are a lot of negative thoughts regarding bankruptcy. Many people believe that filing for bankruptcy means that you failed, that you have done something wrong or that you have been irresponsible. This is not the case – having your debts take control of your life is often something that you cannot control, especially if you are faced with an unexpected medical problem, injury or loss of employment. Divorce, sickness, death and business complications can all also result in serious debt problems. At the Buettner Law Group, LLC we are here to help you through this difficult time and difficult decision. But first, let us help you reveal the truth about bankruptcy:

Myth 1: Bankruptcy will Ruin my Credit Forever

This is definitely not the case. In fact, you will probably start receiving credit card offers sooner than you think. You will be able to get a decent car loan in one to two years and in three to four years you may be able to get a mortgage on decent terms. However, this all depends on what you do during this time and how you rebuild your credit.

Myth 2 – Everyone Will Know I Filed for Bankruptcy

This is only the case if you tell them or announce it on your website. If you don’t, then, no, no one will know except the creditors who receive notice and your Minnesota bankruptcy lawyer. The social stigma surrounding bankruptcy has drastically changed since the economic recession and even if you choose to tell family, friends and co-workers about your situation, they are most likely not going to consider you less of a person because of what has happened.

Myth 3 – I Will Lose Everything

This is probably the main reason why people choose not to even consider bankruptcy. However, this is not the case. There is a big difference between unsecured and secured debt and you will be able to keep your property, personal belongings and even vehicle under many instances. This is almost always the case under Chapter 13 bankruptcy and can also be true under Chapter 7 bankruptcy as well. It simply depends on your situation.

Myth 4- I Won’t be Able to Qualify for Bankruptcy

Again, this is rarely the case. If you have filed in the past, then you may have a problem but the vast majority of people will qualify for bankruptcy.

To learn more about your bankruptcy opinions, contact our team at Buettner Law Group, LLC. We can help you understand what options you have in terms of different types of bankruptcy and alternatives to filing, such as a short sale. Contact us today at 612-377-5311 for a free initial consultation.