Top Bankruptcy Myths in Alabama

There are a lot of myths surrounding bankruptcy that can cause unnecessary hardship and stress. 

There are a lot of misconceptions that Auburn and Opelika residents have about the bankruptcy process, including how filing bankruptcy will affect them moving forward. Friends, family, and colleagues are all going to weigh in; however, it is always better to trust the opinions and advice of trained professionals like David S. Clark, an experienced bankruptcy attorney in Opelika, Alabama. 

Myth 1: Filing For Bankruptcy Means I Will Lose Everything 

Today’s bankruptcy laws offer every debtor many “exemptions” so that any Alabama resident may protect as much of their property as possible. While Chapter 7 bankruptcy is referred to as “liquidation,” it is much less common for one’s assets to be at risk. 

Generous exemptions exist and can limit risk related to your residence, vehicle, some cash, retirement accounts, and most household goods. Ultimately, most property that is considered necessary for life will be exempt from Chapter 7 bankruptcy.  

Myth 2: Everyone Will Know I’m a Failure

Bankruptcy is often due to circumstances beyond an individual’s control, such as divorce, job loss, and major illness. Bankruptcy is rarely the result of irresponsible financial behavior. Rather, filing for bankruptcy relief shows an understanding of one’s financial issues and a willingness to address them.

It is true, however, that bankruptcy is a matter of public record. There may be some reporting regarding your bankruptcy filing but most people will not be privy to this information unless they are specifically looking for it. As long as you are careful who you share this information with, you should not have to worry about everyone knowing about your bankruptcy and financial status.

Myth 3: I Will Never Get Another Line Of Credit

While debtors who have filed for bankruptcy typically find higher interest rates from credit lenders, the focus should be more on keeping new credit cards paid off and rebuilding your credit score organically.

While you will see a decrease in your credit score following your decision to file for bankruptcy, it doesn’t mean you will never have credit again–it’s called a fresh start for a reason. David S. Clark not only understands the overwhelming stress bankruptcy can bring but offers professional financial advice on how to recover. 

Myth 4: Filing For Bankruptcy Is Too Difficult

While it is technically possible to file for bankruptcy on your own, it is extremely difficult. Filing for bankruptcy requires time, money, paperwork, and expertise that is necessary in order to ensure the financial peace Auburn or Opelika residents seek. 

In contrast, David S. Clark is an experienced bankruptcy attorney that can do all of the work for you while offering legal aid throughout the bankruptcy filing process. 

Filing for Chapter 7 or Chapter 13 bankruptcy can seem like a daunting task, but it doesn’t have to be. David S. Clark is a bankruptcy attorney in Auburn, Alabama that can help you get the financial relief you need. Contact David S. Clark today to start your journey towards financial freedom!