Young professionals are often confused by bankruptcy myths

| Feb 8, 2017 | Bankruptcy Law Basics

As a young professional, you may find yourself facing a variety of financial challenges. While you can dig yourself out of some problems, there may come a point when you have no option but to consider bankruptcy.

There are many challenges associated with bankruptcy, including the fact that you may not know exactly what this process entails. This is particularly true if you are a young professional who doesn’t have much experience in the real world.

Fortunately, once you become familiar with the most common bankruptcy myths, you can formulate a plan for making informed decisions in the future. Here are some of the many myths that have held back other people in your position:

  • Chapter 7 and Chapter 13 bankruptcy are the same. Although the basic goal may be the same, these are unique in a number of ways.
  • Bankruptcy is only for people who are financially irresponsible. Nothing could be further from the truth, as many types of people turn to bankruptcy in order to improve their life. For example, you may need to look into this if medical debt has bogged you down.
  • Filing for bankruptcy means that you lose everything. This is a common myth, but you won’t necessarily lose your property by filing for bankruptcy. In most cases, you can keep your assets, including your house and car.
  • Bankruptcy is too expensive. There is no denying the expenses associated with bankruptcy, but most people find that they can afford to move forward because of the financial benefits it will bring them in the future.

With so much going on in your life, you don’t want to leave yourself in a bad financial position, as you never know what the future could bring. It only takes one bad break to find yourself in a financial morass.

Rather than shun the thought of bankruptcy, embrace the fact that this could be the best way to improve your financial life while you are still young enough to reverse any damage. Once you get past the myths of bankruptcy and understand the process more fully, you can make the informed decisions that will put you back on the path to a better fiscal future.