The 6 myths about bankruptcy

The 6 myths about bankruptcy

For the majority of consumers in financial difficulty, it is unlikely that they will share with friends or family their queries or fears about bankruptcy. In this column, we will shed light on the 6 most widespread myths.

If I go bankrupt

1. If I go bankrupt, all my friends and family will know about it. Chances are only your creditors will know about your bankruptcy. Unless you tell your family, they will not be informed.

2. If I go bankrupt, I will never be able to get credit again. Several factors are taken into consideration in determining whether a person can obtain credit. Bankruptcy is a bad thing, but you can rebuild your credit quickly.

3. If I go bankrupt, my tax debts will not be canceled. During a bankruptcy, all your debts are erased with some exceptions. Tax debts are no exception and will therefore be eliminated.

4. If I go bankrupt, I admit my failure. Several reasons lead to debt problems (loss of income, illness, bad luck, separation, lack of information) however, the most important is to make a decision and to rebuild. To go bankrupt is not tantamount to fleeing our responsibilities but rather the opposite.

5. If I go bankrupt, I will lose everything I own. The Bankruptcy Act ensures that people who have to go bankrupt do not lose their absolutely necessary assets such as furniture, personal effects and, in some circumstances, their homes.

6. An appointment with a trustee is a bankruptcy. Not necessarily! A trustee is a professional who can assess the financial situation of an individual and present him with the available options according to his specific situation. Bankruptcy is not the only solution. Check with a trustee in bankruptcy before it’s too late.