Many people have a stereotype about people who file bankruptcy. They think that if someone files bankruptcy that they must be a failure. Others think that if you file bankruptcy your asset–your home, car, possession..all will be liquidated. Neither of these myths about bankruptcy are true. It is true that bankruptcy sometimes comes as a result of a collective group of decisions or acts that may or may not have been in the control of the person considering bankruptcy. Often these involve job-loss, closing a business, medical issues, car accidents, and more. But you’re not a failure if you have to file bankruptcy. On the contrary, many of the famous millionaires you hear about in the news have had to seek bankruptcy protection and have gone on to be very successful. Examples include Donald Trump and more.
People Will Rarely Find Out You Filed Bankruptcy
Some people think that everyone they know will find out that they filed bankruptcy. This is also not true. You do not have to put on a brave face when you meet friends in the street or be embarrassed talking to your coworkers as a result of a bankruptcy. Chances are, you know many people who have filed bankruptcy, but you don’t even know they filed because it is typically very private. If someone wants to find out that you filed bankruptcy, they can find out, but they have to go looking for it, pay for access to a government website, then search for you by name. They cannot simply peruse the local daily news to find out whether you needed to receive protection under bankruptcy. If you want the real answers, talk to a dallas bankruptcy attorney, not some friend who researched the answers on the internet and thinks they know everything there is to know about it.
Bankruptcy Does Not Typically Involve Going to Court
Some people also think that if you file bankruptcy, you must go before a judge and beg him or her to allow you to receive the protection. This is simply not the case. There are rare situations in a bankruptcy where a judge gets involved; however, it is most common for a trustee and your attorney to handle most of the details of your bankruptcy. When you file, you will go to a mandatory creditor’s meeting, which they have a right to attend but rarely do attend. Instead, it will simply be you, your attorney, and your trustee to discuss in a 5-10 minute meeting.