The Page Law Firm is proud to be celebrating its 18th anniversary this April. We all remember how much of a milestone it was when we turned 18. It was the age when we legally became adults and gained all of the rights that come with adulthood. While becoming an adult is exciting, it also means taking responsibility for yourself in ways you did not have to before. The term “adulting” has become a popular way to describe actions and behavior that relate to adult responsibility. Learning fiscal responsibility can be one of the toughest adulting lessons for some young adults. When in a financial bind, responsible adults may need to make tough decisions, such as whether to file for bankruptcy.

Understanding Bankruptcy

You may be familiar with bankruptcy as a term but misunderstand what it really is. References to bankruptcy in popular culture can give you the mistaken idea that bankruptcy is something to be afraid of. Maybe your introduction to the word “bankruptcy” was watching “Wheel of Fortune,” where landing on bankruptcy meant losing all of your winnings. The truth is that filing for bankruptcy:

• Does not mean you will lose all of your money
• Does not mean you were irresponsible with your finances
• Does not make you a failure
• Does not mean that your credit score is ruined

Bankruptcy is a way to protect your financial assets while clearing your unsecured debt and your secured debt if you want to surrender the collateral that secures the loan. Hundreds of thousands of people in the U.S. file for bankruptcy every year and most of them are responsible people who went through unfortunate circumstances. Filing for bankruptcy will not cripple your credit rating. Filers can start rebuilding their credit scores soon after their case is finished.

Continued Education

There are numerous educational resources available for those who want to learn more about finances and ways they can protect themselves. As part of filing for bankruptcy, the bankruptcy code requires you to take a debtor education course that shares tips on how to manage your money and credit. For those who have not filed for bankruptcy, there are still several consumer financial education courses that you can take either in person or online. It is also wise to consult a financial advisor before making major credit decisions such as purchasing a home.

Contact a Collin County Bankruptcy Lawyer

Filing for bankruptcy is not a decision you should make on your own, and you will need help with filing and completing your case. A Denton County bankruptcy attorney at The Page Law Firm can be your bankruptcy guide from start to finish. Schedule a free consultation by calling 214-618-2101 or emailing us directly at [email protected].

Source:

https://www.nerdwallet.com/blog/finance/5-bankruptcy-myths-dispelled/