Our team at Morgan & Partners Inc. has extensive experience in dealing with bankruptcy. If you or your business is facing financial difficulties, you can turn to us for help in finding a way out. Over the years, we have encountered a great deal of misconceptions about bankruptcy and how it works, so we have put together some pointers to help shed light on the matter.
Keep reading to learn about a few of the most common misconceptions about bankruptcy and the truth surrounding them.
- Misconception: Bankruptcy Always Results in Losing One’s Home – In our experience, many people worry that filing for bankruptcy will inevitably result in loss of their home. Fortunately, this is not the case. While some people do lose their homes as a result of bankruptcy, this number represents only a tiny fraction of the whole. Our team will work with you to make sure you can keep your home if possible.
- Misconception: Bankruptcy Prevents You from Building Credit – Another mistaken belief people hold about bankruptcy is that it will prevent them from building credit in the future. Rest assured, bankruptcy is not intended to be a permanent stain on your financial record. You will be able to rebuild your credit over time, which means you can still look forward to things like buying a home in the future.
- Misconception: Bankruptcy Limits How Much You Can Earn – Many people worry declaring bankruptcy will put a cap on their total earnings. This is not the case, as the Bankruptcy Act does not restrict how much an individual can earn. However, know that if you earn more than your set levels, you will have to pay the extra towards your debts.