In your current financial situation, filing for bankruptcy may be your best option to finally becoming debt free and start to accumulate a better credit score. However, you may feel that bankruptcy is a scary step. This is usually because of some misconceptions that surround bankruptcy. Here are some important things to know that can ease your mind about filing:

1. You Don't Have to Lose All Your Assets: Many times, as a way to pay off the debt, the creditors are going to ask for ownership of your assets. However, you don't have to lose all of your assets, which is why it's important to hire a bankruptcy lawyer. They will help protect your assets by exempting them from the situation. The only thing that your bankruptcy lawyer may not be able to protect are things such as valuable art of other collectibles that hold high value. 
2. Bankruptcy Doesn't Destroy Your Credit: Since you are already in a bad financial state when you have to file for bankruptcy, it's safe to assume that your credit is already pretty bad. Filing for bankruptcy isn't going to make it any worse. The only thing you have to worry about when it comes to your credit after bankruptcy is finding a way to rebuild it. It's best to start meeting with a credit counselor who can help you with this process. Eventually, you can easily get your credit back up to high standing. 
3. Your Retirement Plan Cannot be Touched: If you have a good amount of money put away for retirement and it's held in your 401K, IRA account, or a pension, you don't have to worry about that. Legally, this money cannot be touched when you file for bankruptcy. On top of this, your bankruptcy lawyer will ensure that it is protected. 
4. Bankruptcy Doesn't Have to be a Final Option: You may have heard or met some people who say that bankruptcy should be a final option when you are in a severe amount of debt. However, this shouldn't have to be the case. After all, if you are far in debt, chances are you aren't easily going to be able to pay it off by becoming stricter with your budget. To continue living comfortably and getting back on your feet more quickly, bankruptcy is definitely a good option. 

Now that you know these important things about bankruptcy, you can see why you don't have to go into the process scared, especially if you have a bankruptcy lawyer by your side. For more information, contact local professionals like David S. Riehl, Attorney At Law.