As a Maryland consumer, you have always prided yourself on being smart with your money. However, things suddenly spiraled down after you suffered a personal crisis, leaving you heavily in debt with no way to relieve it. You see no way out other than filing for bankruptcy but have certain fears. There are some common bankruptcy myths that can be debunked, however,
You’ll lose everything you own
Many worry that if they file for bankruptcy, they’ll lose everything they own. This isn’t true; after filing, you can keep most of your personal belongings and even your home. In some cases, your vehicle might be repossessed, but that only happens if you owe on a car loan you cannot repay.
Your credit is finished
A common myth about bankruptcy is that filing means that your credit is damaged forever. Although you will see your credit score drop, you can quickly begin to rebuild within several weeks. Many people who file later receive credit card offers; your best bet is to get a secured card and use it responsibly so you can slowly but surely rebuild your credit.
Spouses must file
If you’re married, you might worry that if you file for bankruptcy, your spouse will have to file as well. This is a common myth about bankruptcy; if only one spouse has amassed debt, they alone have to file and the other is safe.
You can discharge all your debts
Bankruptcy allows you to discharge certain debts, but you can’t do that with all obligations. Only your unsecured debts like credit cards, personal loans and medical bills can be discharged. Anything considered secured debt will generally remain.
Bankruptcy is not the end of the world. Depending on the situation, you might find it best to file to get a reset on your finances.