Do you feel the hammer hanging over the head of your business' financial security?

There are so many misconceptions about bankruptcy that I thought it might be helpful to highlight a few. There were massive changes to the bankruptcy law back in 2005. Some people even came out of it believing that if you hadn’t filed by 2005 you never could! That’s how mixed up everything got.

I’m just going to highlight a few of the more common misperception here.

First, your house, car, and boat are not exempt from paying off the loan if they are listed in your bankruptcy filing. You’ll still need to pay off the loans, but you can keep them if you can make the payments.

Second, spouse’s credit reports ARE affected by a bankruptcy filed by the other spouse, if they have any joint accounts. Since most people who are married have joint accounts, it will affect both of your credit ratings.

Third, bankruptcy gives you a “start over” with your credit. Your credit rating will reflect your bankruptcy for a certain time period. During that time you may have to pay higher interest rates, be denied credit, or even lose a job opportunity. Not only that you’ll need to get permission from your partner if you want to file joint bankruptcy.

Fourth, you’ll never be able to buy a home again. That’s not true. Creditors look at your most recent history, so it depends on how long ago you filed. You may have to pay a higher interest rate or make a higher down payment, but you can definitely own a home again. After some time it will have little if any influence.

The list actually goes on and on. The best way to know if bankruptcy is the right thing for your particular circumstance is to review your situation with a lawyer. I found a Nebraska Bankruptcy Lawyer who even offers some free consultations and, amazingly, home appointments. That way you can understand what you’re really getting yourself into. How it will affect you on all levels and what options you might want to pursue before taking such a big step.

Often when the bills are piling up, and we’re getting further and further behind, we just want to get out of it as fast as possible. However, look at all the options before rushing into anything. You may just be able to save the day, without having to go through bankruptcy.