Gillespie & Murphy, P.A.
Call For A Free Consultation : (252) 558-1374

3 myths about bankruptcy North Carolinians still believe

Many people are hesitant to even consider bankruptcy. This is due to numerous myths that continue to persist regarding the practice. 

The truth of the matter is that bankruptcy can be highly useful to those in massive debt. For many, it is the only option to get their finances back on track. Here are some of the most common myths you might still believe about filing for bankruptcy

Myth #1: Bankruptcy shows financial carelessness

Unfortunately, many people have a negative perception of others who need to file for bankruptcy. They wrongly assume these people have been careless with their money and deserve to suffer as a result. The reality is that anyone can end up filing for bankruptcy.

Some people suffer from long-term unemployment and end up racking up massive amounts of debt to stay afloat. Other people suffer from a devastating illness, which causes them to accumulate large medical debt. These tragedies can happen to anyone. Filing for bankruptcy is never a sign of personal failure. 

Myth #2: You will lose your house and all your other assets if you file for bankruptcy

Another reason people are hesitant to consider bankruptcy is they assume they will lose their houses or their cars. In many cases, you receive a reasonable exemption amount, allowing you to keep your home, car and other eligible assets. If you have an expensive piece of artwork in your home, then you may need to relinquish that. However, you can retain all the necessities. 

Myth #3: Everyone will know you filed for bankruptcy

Filing for bankruptcy can be embarrassing. One common myth is that everyone has to know you filed. While it is part of the public record, you have to pay to access those records, and it is not likely your friends will do that. In the event the bank forecloses on your house, your neighbors will find out about that. Fortunately, declaring bankruptcy should prevent that from occurring. 

 

No Comments

Leave a comment
Comment Information
Attorneys Email Us For A Response

Need Help?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Four Different Locations To Serve You Schedule an appointment at our New Bern, Wilmington, Greenville, or Jacksonville office.

Wilmington Office
321 North Front Street
Wilmington, NC 28401

Phone: 252-558-1374
Fax: 910-254-3444
Wilmington Law Office Map

Gillespie & Murphy, P.A.
320 Middle Street
New Bern, NC 28560

Phone: 252-558-1374
Fax: 252-636-0625
New Bern Law Office Map

Jacksonville Office
200 Valencia Drive, Suite 119
Jacksonville, NC 28546

Phone: 252-558-1374
Jacksonville Law Office Map

Greenville Office
101 W 14th St, Suite 101
Greenville, NC 27834

Phone: 252-558-1374
Greenville Law Office Map