Different prominent people or companies file for insolvency after going too deep into debt. Since over 90 percent of the public bankruptcy cases revolve around rich personalities deemed irresponsible or financially cunning, we tend to create our own illusions and presumptions about insolvency.
Here are some of the most despicable insolvency myths and their actual explanations by HardiesLawyers.com.
Only irresponsible people file for insolvency
Most bankruptcy law experts admit the fact that some people can’t resist the urge to visit an insolvency solicitors whenever their finances go down the drain. Most of the insolvency cases we see on social media or on tabloids revolve around the rich who quote figures that are too lavish to be responsible.
This will always overshadow the genuine insolvency claims from jobless individuals, or hardworking citizens who are just going through a hard financial patch after going through an expensive divorce or suffering from serious illness.
Insolvency gives you a fresh start
This is rarely the case. You might get off some financial responsibilities and debts but you still have to handle basic contributions to child support, crime restitution and tax debts. You will need different legal pleas to absolve this kind of debts.
A bankruptcy claim will ruin your credit
A successful insolvency claim gives you a clean slate on which you can begin building your credit worthiness. This is contrary to the popular opinion that banks and loan institutions will find you irresponsible just because you went bankrupt a couple of months ago.
You can never own anything ever again
The popular belief that your past debtors will come hunting the moment you begin accumulating new wealth is a total myth. Anybody recovering from insolvency can buy and possess whatever they can afford.
With a good insolvency solicitor in Perth, you can get a new shot at your financial life. Always bear in mind that a successful insolvency claim will give you a second chance. The chance to put in place proper disaster management plans that will help you survive the worst financial storms.