There are many negative perceptions about bankruptcy. On one hand, some of these perceptions are well-deserved. After all, there are some potential drawbacks to filing. Yet there are also some major misconceptions about bankruptcy—some of which could keep someone from filing when they really should. The following information is designed to debunk these bankruptcy myths. It may even help you decide what your next step should be, and if bankruptcy might be the right solution for you.

Myth 1: Bankruptcy Ruins Your Credit Forever

True, your credit can take a hit after filing for bankruptcy, and it may be difficult to obtain new lines of credit once the process starts, but bankruptcy does not completely ruin your credit. If anything, it gives you a clean slate to start over. It is also usually less damaging than continuing to make late payments on your debts. If you are still a little apprehensive about filing, talk to a qualified bankruptcy attorney for a comprehensive analysis of your financial situation.

Myth 2: You Lose All Your Personal Property

Many people think you have to give up everything in bankruptcy, but this is not always the case. In fact, bankruptcy is designed to help protect some of your possessions from creditors. Furthermore, you may be able to keep some of your unprotected items by agreeing to continue paying on them. Do not expect to keep it all, just do not expect to lose it all either.

Americans make financial decisions every day of their lives, such as where to purchase food and how to save money on basic living expenses. However, few choices have implications that can match the seriousness of filing for bankruptcy.

Choosing to file for bankruptcy is a critical decision, but for millions of debtors, it is the first step toward financial stability. Although an attorney is the best source for guidance in this matter, here are three questions that can help you decide if bankruptcy is a smart option:

What Is My Current Financial Situation?

There are many options available to Americans who want to resolve their debts, but for those who wish to avoid a mass liquidation of assets, chapter 13 bankruptcy may be the answer. If you are struggling with insurmountable debt, you likely have many questions and concerns about the chapter 13 bankruptcy process.

An experienced bankruptcy attorney can evaluate your situation, address your concerns, and provide recommendations for debt relief. In the meantime, here are three common questions about chapter 13 bankruptcy:

Will I Lose My Property?

Most debtors face similar personal and emotional conflicts. The uncertainty that comes with insurmountable debt can cause immense stress, and many Americans feel overwhelmed with the complexities of financial recovery. Although many debtors share these concerns, each case is unique.

There are many causes of debt—from medical bills to a sudden loss of employment. One of the most common sources is credit card debt. With high interest rates and the convenience of credit, these cards land many Americans in financial turmoil. This article will shed some light on credit card debt and address some of the associated concerns.

Three Factors Determine If Your Credit Card Accounts Will Close Due to Bankruptcy

Filing for chapter 13 bankruptcy is a smart option for thousands of Americans who struggle to pay their debts. Choosing to file bankruptcy is a major decision, and you should only do so after evaluating alternative options. You should also be aware of the bankruptcy qualifications that apply when attempting to file for chapter 13:

Personal Income

According to Uscourts.gov, personal income is the first criteria when filing for chapter 13 bankruptcy. Proof of a stable income is essential.