What do over 1 million people have in common with Octomom, Nadya Suleman? Well, all of these people, Octomom included, will have filed for bankruptcy this year.
This article addresses 5 myths about bankruptcy, many of which people are not aware. For example, those who file for bankruptcy are financially irresponsible. That is a myth. People find themselves struggling with debt for a variety of reasons, usually because of some serious personal problem such as losing your job, going through a divorce or having a major medical issue. Another myth is that bankruptcy will discharge all of your debts. Some debts, such as student loans and child support, are not dischargeable in bankruptcy. Also, you will not necessarily emerge from bankruptcy without having to pay a dime. The more likely scenario is that you will have to pay some monies towards your debts assuming you can afford to do so.
There are various downsides to each of the different types of bankruptcies, depending on your individual situation. However, as Walter Miller, a professor at Boston University School of Law who teaches bankruptcy states, “Bankruptcy is a major disruption in your life. If you can work it out with your creditors, go that route.” If you find yourself contemplating bankruptcy but are not sure if it is the best option for you, you should consult with a debt settlement attorney. A debt settlement attorney is another option for debt relief that is not bankruptcy. By negotiating a large reduction in the debt that you owe, you will have an opportunity to become debt free, sometimes faster than if you decided to file a Chapter 13 which is generally spread over 5 years. You owe it to yourself to at least weigh all of your options before filing for bankruptcy.