The Bankruptcy Option: Myths and Realities—and How 4 Pillars Can Help
Declaring bankruptcy involves some very difficult choices. Because the roller coaster you may experience during the process can be so rattling, it’s important to have solid facts on which to base your decisions. There are several myths out there that cloud the landscape. Here are a few of the most common ones.
Myth: If I file for bankruptcy, I lose all of my money.
Fact: You do not lose all of your money when you file for bankruptcy. This myth comes from the perception that bankruptcy is synonymous with “going broke.” This is not the case, however. When you get bankruptcy protection, you may able to keep more of your money. Bankruptcy protects your assets from being automatically seized by creditors. This means you may have more control over how your money is used to pay creditors back after you file for bankruptcy. If anything, you will have more money. To figure out how to balance your budget after bankruptcy, you can seek the help of 4 Pillars. They can give you careful guidance to improve your future financial prospects.
Myth: If I file for bankruptcy, I don’t have to pay back any of my current debts.
Fact: You may still have to pay debts back. The exact amount you will be paying will usually be much less, however. Also, it’s true that people have been able to avoid paying some debts after filing for bankruptcy. If you are going into bankruptcy with the mindset that all debts will disappear and you wont pay anything, you may be setting yourself up for disappointment and failure. Use a professional company such as 4 Pillars to help guide you through the process.
Myth: If I file for bankruptcy, I can never buy a house ever again.
Fact: Filing for bankruptcy may delay your next purchase of a home if you plan on borrowing money from a bank or typical mortgage company to make the purchase. However, the exact amount of time will depend on both the lender and the loan product you are trying to make use of. For many lenders, a minimum of two years has to pass before you can get approved for a loan. This means you must be able to show two years of good credit management practices after filing for bankruptcy before getting approved by one of these lenders.
Bankruptcy is not something to be afraid of but does need to be carefully planned and reviewed with all the other options available. A company like 4 Pillars can help you make the right choices and position you for success. You can learn more at 4Pillars.ca.