The subject of bankruptcy conjures up several myths that are unsupported by fact but which persist both nationally and in Arkansas. These myths about bankruptcy are often created by groups that have vested interests in preventing bankruptcy debt relief. A federal reserve bank in another state has published a report that may finally stifle the false perceptions about bankruptcy relief created by some banks, creditors, credit counseling agencies and debt relief companies.
There are several reasons why consumers in Arkansas may find it necessary to choose bankruptcy to get out from under a crippling debt load. Reasons commonly cited for bankruptcy filings include credit card spending, unexpected medical expenses, losing a job and disability. Consumers who choose to get major debt relief by filing for bankruptcy are often industrious, hard-working individuals and married couples.
After filing for bankruptcy six times in a four-year span, a woman has been sentenced to federal prison for just over a year after she pleaded guilty to providing false statements in her bankruptcy attempts. Apparently all of her bankruptcy attempts were Chapter 13 filings, and all were dismissed as a result of missing information or documentation.
As we have written about, and as many people know, filing for bankruptcy is a major decision in a person's life. It will help you clear out many debts that are leading you towards financial despair. However, bankruptcy is also very hard on the person who files. It will take some time to rebuild your credit and to get back to the way things were.