There are many individuals who save money, budget effectively and build themselves a significant emergency fund. However, plenty of others may not be so prepared and an unexpected event could result in financial disaster.
Debt tends to have a stigma attached to it. Therefore it’s understandable that many don’t want to seek help, especially if bankruptcy seems to be the only viable option.
There are many misconceptions about bankruptcy, so let’s explore the four biggest ones.
- You’ll Lose Your Home
There is little likelihood that your home will be sold to recoup debts that are owed to a creditor. Providing house repayments continue and are met on time, your property is unlikely to be seized in order to cover the debts written off by bankruptcy.
- Filing for Bankruptcy Will Get You Fired
It’s very unethical for an individual to be fired by their boss as a consequence of filing for bankruptcy. In fact, by law your employer cannot terminate your employment with bankruptcy being the sole reason. Your non-filing spouse’s job will also be protected. Furthermore, potential employers cannot use bankruptcy to discriminate against an individual, although they will be able to see it when considering you for a post.
- All Your Debts Will Be Cleared When Filed Bankrupt
While filing for bankruptcy will eliminate the large majority of debts, there are some forms of debt that are exempt from being wiped. The most common debts that remain in place are student loans, child support obligations and maintenance payments.
- You’ll Be Denied Any Further Credit
While getting further credit will certainly be more difficult, it’s not impossible. An individual can rebuild their credit rating, so long as they are resilient and consistent with payments in the future.
If you’re having financial troubles and bankruptcy is on the cards, it’s best to consult an expert. Irwin Insolvency has extensive expertise in dealing with bankruptcy and will help recommend the best solution for you. Contact us today to discuss your financial situation.