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Exposing Some Dangerous Myths About Bankruptcy Protection

Facing a substantial amount of debt can be an extremely stressful experience, and there may be instances where it is simply impossible to repay these debts. When you are facing this type of a financial challenge, you will need to have accurate information about the legal protections, such as bankruptcy, that can be used to help you manage this situation.

Myth: It Is Always Required To Hire An Attorney To File For Bankruptcy

There are many people that may find that they need to file for bankruptcy, but they may not be able to afford to hire an attorney for their case. In situations where the bankruptcy filing will be fairly simple, it may be possible to complete this process without retaining an attorney. Many of the forms that will be used to file for bankruptcy are standardized, and there are online services that can provide you with these forms and help you complete them.

Myth: A Bankruptcy Filing Always Will Require A Total Liquidation Of The Petitioner's Assets

The process of filing for a bankruptcy can be scary for those that are considering it due to a fear that they will lose all of the assets and possessions that they have built over their lives. Luckily, there are filing options that will avoid this outcome as it may be possible to negotiate new payment terms with your creditors. While you may assume that the creditors will be unwilling to negotiate new payment terms, this can be ordered by the court, and if the creditor refuses, the judge may be able to intervene.

Myth: Bankruptcy Filings Can Be Easily Accessed By Those That You Know

For those that are needing to file for bankruptcy protection, it can be easy to be embarrassed. Not surprisingly, some individuals will have a fear that others will be able to easily access their bankruptcy papers. While some of the documents from the filing will be public, sensitive information will be stripped from these documents. Additionally, while it is possible to obtain copies of many court documents, it is usually fairly difficult and a person may need to show a reason why the information is required. At the end of the process of filing for bankruptcy, you may also request the judge to seal the documents, and this can further help to protect your privacy. For these reasons, you should be able to confidently proceed with filing for this protection while knowing that your privacy can be protected.