The decision to file bankruptcy is a stressful one. Although the number of bankruptcies in the United States is on the decline, it's estimated that more than one million people will file a Chapter 7 or Chapter 13 this year. A bankruptcy can help you get past a financial setback, but there are many things you need to consider. Most importantly, you need the truth about the law and your situation. Here are a few of the myths associated with bankruptcy:
When you find yourself in escalating debt with little way forward, understanding the best options available to you can be difficult. That's especially true when every option will still be difficult, as is often the case for those whose debt has become unmanageable. At that point, debt relief and bankruptcy are the two tools available, but many people do not understand the differences between them and the choices involved.
To many people, debt consolidation sounds like a solution to debt problems. By consolidating credit card debt into one loan, debtors can reduce their monthly payments and pay a lower interest rate.
There many myths about bankruptcy and taxes. Some experts say that tax debts are not dischargeable. Others say they are.