If you’re soon going to file bankruptcy, you might be thinking that you’ll loose everything you have in the process. However, this isn’t true at all. In fact, you can rebuild your finances and hope for an even better future after filing bankruptcy.
There are lots of myths about bankruptcy which are either completely or partially wrong.
So, let’s discuss a few facts about bankruptcy.
Not Everything is Sold in Bankruptcy
If it is your first time filing bankruptcy, you might think that you will lose everything you own in the process. However, this is not true at all. In fact, people filing bankruptcy get to keep a lot of their assets.
For example, when you are filing for chapter 7 bankruptcy, you can exclude the assets which are exempt from bankruptcy. For example, these assets are every day essential assets which you need to keep your life going. However, exempt assets vary from state to state. So, always consult your Tennessee bankruptcy lawyer before filing for chapter 7 bankruptcy.
On the other hand, if you’re filing for chapter 13 bankruptcy, you will lose none of your assets. However, the total value of your assets will probably increase the repayment amount you will have to give every month.
You Won’t Get Rid of Every Debt
While filing bankruptcy can help you in getting rid of most of your debt, it does not rid you of every single type of debt out there. As a rule of thumb, any depth which you are responsible for will not be discharged. For example, you cannot get your student loan amount discharged by filing bankruptcy.
Paying Off Isn’t Always The Best Option
Filing for bankruptcy might not seem like the best option to you, but in certain circumstances, it actually is the best option.
Repaying all of the debts isn’t the best option if you aren’t in a good financial situation.