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Eliminating Fear to Find Positive Outcomes - Common Myths About Bankruptcy

Finding yourself in dire financial straits may not be as uncommon as you believe. As the economy changes and individuals go through lean times, it's important for you to know that there are solutions that can stop you from constantly worrying about how you're going to repay debts and go from one day to the next.
Though many people may be aware of bankruptcy as an option, relatively few are familiar with the ins and outs or understand what goes into the proceedings. In fact, in the place of real information, many myths have taken hold and have displaced valuable knowledge that might otherwise be gleaned.
Below, you'll find a guide to dispelling some of the more common and dangerous myths that may be keeping you from pursuing bankruptcy as an option. Educating yourself might be the first step toward finding freedom and relief, and can help guarantee that you can reestablish your finances to create a better future.

Losing Your Possessions

Many people resign themselves to struggling through the collections process because they believe they'll be exposing themselves to losses they won't be able to stomach if they file for bankruptcy. While liquidation may be necessary for the most extreme circumstances, there are other types of bankruptcy which may be of a great benefit to you without risking any of your possessions.
Most of your belongings are likely to be low enough in value that they'll be of very little interest in any bankruptcy proceeding. If your high-value items have large financial encumbrances attached, they may also be spared as part of a settlement. Perhaps most important to note is that a large percentage of Chapter 7 bankruptcy proceedings doesn't involve surrendering any assets at all, allowing you to continue to live your life the way you desire without making substantial material sacrifices.

Destruction of Credit

Your credit score is important for making sure you have access to financing as needed, but it's not so static that it can't be improved. While a bankruptcy might result in some negative activity on your report, it's unlikely that that negativity will be more substantial than what you may accumulate while struggling to keep up with your bills. Often, missing repeated payments can be worse than assembling a solution.
When you file for bankruptcy, it stands as undeniable proof that you have a plan for organizing your debts and working to pay them off. As long as you keep up with the requirements of your bankruptcy agreement and then work hard to pay your bills on time following the resolution of your case, you might even see an increase in your credit score. At a bare minimum, you can reduce the financial stress which may drive some of the financial struggles, to begin with.

Lack of Medical Relief

Challenges in the healthcare industry have left many people struggling to keep up with medical bills that they weren't able to avoid. Even otherwise responsible people can find themselves struggling with medical debts, but you may not be aware that relief is available.
Medical bills can frequently be discharged in bankruptcy if your attorney negotiates them into your settlement. Rather than believing the myths peddled by bill collectors, you should take solace in the professional assistance offered by your attorney.
Hickson Law PC is experienced in multiple types of bankruptcy proceedings and can offer you the support and assistance you need. Relying on professionals can guarantee that you avoid falling victim to myths and misinformation, and can ensure that you find financial solutions that will truly work to protect your interests.