With the New Year upon us, many people are setting aside time to reflect on their personal and economic circumstances. Unfortunately, many people who ultimately find themselves to be in poor financial health often refuse to consider the financial lifeline offered by either Chapter 7 or Chapter 13 bankruptcy.

The reason?

Simply put, they are afraid to file for bankruptcy due to certain myths about its financial/social consequences or because they don't fully understand the process.

Today's post -- the second in a series -- will continue to attempt to debunk a few of the more common myths associated with bankruptcy.

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It's extremely difficult, if not impossible, to file for bankruptcy.

Fortunately, this couldn't be further from the truth. The truth is that while the bankruptcy process can be somewhat difficult for a person without a legal background to fully comprehend, an experienced attorney can break it all down into more understandable terms and help you examine your options. Furthermore, an experienced attorney can take care of complex filings/paperwork and attend court hearings on your behalf.

If I file for Chapter 7 bankruptcy, I can only do it one time.

The United States Courts website helps debunk this myth. "The [bankruptcy] court will deny a discharge in a later chapter 7 case if the debtor received a discharge under chapter 7 or chapter 11 in a case filed within eight years before the second petition is filed. The court will also deny a chapter 7 discharge if the debtor previously received a discharge in a chapter 12 or chapter 13 case filed within six years before the date of the filing of the second case [unless certain criteria are met]."

Filing for bankruptcy will make me seem financially irresponsible.

This is one of the most common -- and most unfortunate -- myths about both Chapter 7 and Chapter 13 bankruptcy. The reality is that people from all walks of life often turn to the fresh start offered by bankruptcy following a serious and perhaps life-altering experience that has left them unable to pay their bills or gain any type of financial traction despite their best efforts. Common examples include prolonged illnesses, divorce, and loss of employment.

Remember, virtually anyone can experience financial problems due to circumstances beyond their control. Regardless of your financial situation, contact an experienced legal professional to learn more about your rights and your options under Chapter 7 bankruptcy or Chapter 13 bankruptcy.

This post is for informational purposes only and is not to be construed as legal advice.

Source:

MSN Money, "12 Myths About Bankruptcy" November 17, 2011