Many people look down on bankruptcy and those who file. At Burr Law Office, rather than viewing it as a negative thing, we see filing as an empowering way to taking control of your financial situation. All too often, people fall victim to myths and misconceptions about Milwaukee bankruptcy and how it works. Here are a few of the most common ones.
Myth: You have to be completely broke to file
Different types of bankruptcy require different things. In a Chapter 13 bankruptcy, a repayment plan is set up according to the amount of money someone earns. It’s actually best to seek financial help before you’re “flat broke,” as it will help make the process easier and shorter.
Myth: You’ll never qualify for a loan again
Filing for bankruptcy does affect your credit, but not forever. As long as you stick to it and follow the guidelines for the process, you’ll be able to qualify in no time. Depending on your type of bankruptcy, some people even receive credit offers immediately after discharge.
Myth: You can spend, spend, spend right before you file without consequence
People used to assume you could rack up debt on your credit cards right before you filed and you wouldn’t have to pay that back. This is absolutely not true and, in most cases, is considered fraud by the courts. The most important parts of a successful bankruptcy are honesty and dedication.
If you’ve found yourself in financial trouble and are considering filing for bankruptcy, contact Burr Law Office. Our Milwaukee bankruptcy experts will help you get started on the path to financial freedom!