Filing for bankruptcy is a major decision that often requires a fair amount of consideration. However, a person might also want to do some research and speak with someone with experience in the area before coming to a conclusion. When it comes to consumer bankruptcy, there are several common misconceptions that might deter a person in Maryland from considering it as a viable option in the first place.
Although Chapter 7 bankruptcy can involve the liquidation of certain assets, that does not necessarily mean all assets. One may retain ownership of many — and in some cases all — of his or her possessions throughout the process. This myth may also apply to debts as well, as not all are eligible for discharge. Obtaining guidance about the impact on assets and debts may help a person make informed decisions.
A person may also feel as though bankruptcy indicates some sort of failure, or even that attempting to repay debts is more beneficial. However, certain debts, such as medical bills or those from a sudden loss of income, can be unavoidable. Continuing to struggle with overwhelming financial burdens could have devastating consequences, and filing for bankruptcy might be the correct path.
Avoiding a potential solution on account of misinformation can do more damage than good. Those who are in search of debt relief might find it beneficial to consult an attorney to get the real facts about consumer bankruptcy. An attorney in Maryland can address a client’s concerns and needs, advise him or her of the available options and potential outcomes and assist in pursing the most favorable result possible.
Source: Time, “5 Bankruptcy Myths You Shouldn’t Believe”, Sean Pyles, June 13, 2017