Five misconceptions about filing bankruptcy

Bankruptcy is a word followed by a trail of misleading stereotypes. Some people assume that filing bankruptcy will result in losing everything. On the contrary, bankruptcy offers a fresh start for many individuals who feel they are at a dead end.

To dislodge such misconceptions, it’s important to know the facts about bankruptcy in Colorado. You might already be dealing with stress and anxiety as you shuffle through options. Rest assured that there’s hope for a new beginning. Common misconceptions should not scare you away from making an important decision for your future, which include:

1. I make too much money to file bankruptcy. Anyone can file for bankruptcy. Income level does not matter. People with a high income can still file for Chapter 7 bankruptcy. Your income is reviewed along with your expenses. It’s possible you can qualify depending on the situation.
2. I will lose my house. Most bankruptcy cases do not result in losing all your assets. Colorado exemption laws protect some assets, depending on each unique case and circumstance. Creditors cannot take your property and assets if they are legally moved around. This protected property can include your furniture, car and home.
3. I will lose my job. Firing an employee for the reason of filing bankruptcy is illegal. Despite the stigma, filing for bankruptcy is very helpful for employees who are constantly being called by collectors and might face lawsuits. Bankruptcy can resolve problems such as stress, poor credit and debt.
4. I can’t discharge my student loan debt. Myths aside, it is possible to discharge your student loan debt. You can file a motion with the bankruptcy court. People who are physically or mentally impaired generally have a good case. But anyone has a chance to prove student loans are burdensome and possibly impossible to pay off.
5. It’s easy to file bankruptcy. One of the most harmful misconceptions is the assumption that filing for bankruptcy is easy, and can be done alone. Colorado bankruptcy law is complex. If the filing process is not accurate, correct and complete, you could risk losing your assets and find yourself in a payment plan.

It’s important to consider a bankruptcy review before you make any major decisions. There are plenty of options out there to help you make the right choice and move forward with your life.