Filing for bankruptcy should only be used as a last resort, your friends may have told you. Your credit will be ruined and you might never recover, you may have also heard. While this advice may be well-intentioned, it is not necessarily true. There are many misconceptions to personal bankruptcy that are keeping Indiana residents from getting the relief they desperately need.

As Fox Business explains, a stigma against bankruptcy remains, despite it being outdated. Friends, family members and associates who simply do not know better are not the only ones who give faulty advice on the subject. Some financial advisors, credit counseling services and banks also advise against filing for bankruptcy, even when a Chapter 7 bankruptcy can help you get back on your feet.

It is true that a bankruptcy will remain on your credit report for several years. However, many people are able to begin repairing their credit and obtaining new loans soon after their bankruptcy discharge. Rather than being embarrassed and ashamed to consider filing for bankruptcy, you may wish to educate yourself on your options and consider the ways in which a discharge of your debt can help you start over with a clean slate.

Bankruptcy is an increasingly common way for people with insurmountable debt to find relief, which many lenders understand. Therefore, personal bankruptcy is beginning to lose much of its past stigma, a fact that you may find reassuring. Since each person’s situation is different, the information in this blog is meant for educational purposes and should not replace the advice of a lawyer.