Bankruptcy is not a place you want to be, but sometimes people are so far into debts for one reason or another that it is unavoidable. At least they THINK it is unavoidable. The truth is that there are several options to filing for bankruptcy, and since bankruptcy is such a huge and drastic step, it should only be considered as your last option, AFTER you have thoroughly investigated and exhausted all other options as not being applicable or feasible.
But if bankruptcy is indeed your only or best option, it is not something you should do alone or by yourself, whether personal bankruptcy or business bankruptcy. The laws differ from state to state, and you really need the advice and counsel of a good bankruptcy lawyer. This bankruptcy attorney should be local to you, should be familiar with bankruptcy in your state, and can advise you as to what your real options are, as well as helping and advising with the mountain of paperwork and forms that will be required.
There are some common misconceptions about bankruptcy. It is totally different than declaring bankruptcy in the game of Monopoly, but some of the things that people assume about bankruptcy are totally false, and we will take a look at some of those things here.
Untruth #1: I will lose everything
There are different types of bankruptcy, and again, a qualified attorney can talk with you about this. But there is no guarantee or mandate that you will lose everything, or in fact, ANYTHING. You may be in a position to actually retain the things you have, and to be conscious to get caught up on overdue payments as well as making timely payments to your creditors in the future.
Untruth #2: Everybody will know about it
Basically, this is up to you and who you tell. Yes, bankruptcy is a matter of public record, but who will go into public records to search for it? Do you regularly go to the public records database to see if any of your friends or neighbors have declared bankruptcy? Only your creditors will know, and they are prohibited from making it public knowledge.
Untruth #3: I