It is common for people who are exploring the idea of filing for bankruptcy to have some concerns about actually doing so. Unfortunately, some of these concerns may be based upon incorrect information or perceptions about bankruptcy. In some situations, people who could benefit from filing for bankruptcy are deterred from doing so because of these misconceptions. If you are considering bankruptcy, make sure that you truly understand what it is all about before you decide whether it is the right thing for you.

If you have gotten the impression that bankruptcy is only for people who are irresponsible or who want to escape their financial obligations, please know that this is not true. Many different types of people file for bankruptcy for many different reasons. In fact, the reasons behind each individual bankruptcy are as unique as the person, couple, or business that is filing for bankruptcy. Some of the situations that can lead to bankruptcy include sudden and unanticipated events like divorce, death of a spouse or family member, job loss, major illness, or natural disaster. These events and other things that can cause bankruptcy can happen to anyone, and they can completely wipe out any savings that a person or a family has and leave them in a precarious financial position.

Another misconception about bankruptcy is that it permanently destroys your credit. While it is true that there will be an effect on your credit, it is important that you understand that any negative impact is likely to be short term. The long term effect of bankruptcy on credit is often that people who have gone through a bankruptcy do work to rebuild their credit afterwards, and they sometimes even end up with better credit than they had in the years prior to their bankruptcy. Your present and future financial choices have a bigger impact on your credit score than whether or not you have filed for bankruptcy. In other words, if you have poor money management skills or you experience a financial emergency before you go through bankruptcy and then you develop good financial habits or the emergency circumstances which strained your finances cease, your credit can recover.

A third misconception about bankruptcy is that it erases all of your debts and financial troubles. While it is true that many debts can be discharged through bankruptcy, there are some debts that you cannot get rid of. There are also limits on how often people can file for bankruptcy. Developing a clear understanding of what you can and cannot do with a bankruptcy is essential to making an accurate assessment of whether bankruptcy is right for you. Kansas City Debt Relief Attorney Douglas Breyfogle can help you understand bankruptcy by giving you the information that you need in order to make an informed choice about whether to file. To learn more about bankruptcy, or if you would like to schedule a free and confidential consultation with Mr. Breyfogle, please call our office today, at (913) 742-8700.