Facing insolvency can be a stressful experience. On top of the financial burden, you might be worried about what it means for your future. Unfortunately, there’s a lot of misinformation floating around about insolvency, which can make things even more scary and confusing.
So, let’s clear the air and debunk some of the most common myths.
Myth #1: Insolvency Means the End of the Road
This simply isn’t true. Insolvency is a financial situation, and there are tools available to help you get back on track. Insolvency proceedings, like bankruptcy or restructuring, are designed to offer a fresh start and a path towards financial recovery. Many businesses and individuals have used these processes to emerge stronger than ever.
Myth #2: Insolvency is a Sign of Personal Failure
Financial difficulties can happen to anyone, often due to factors outside your control – like economic downturns or unexpected expenses. Remember: Insolvency is a financial situation, not a reflection of your character or abilities. Seeking professional help and taking action to address your situation shows responsibility and resilience, not failure.
Myth #3: You Lose Everything in Insolvency
In most cases, you won’t lose everything. There are usually exemptions that allow you to keep essential items like your car and household belongings. A licensed insolvency professional can advise you on what assets are protected.
Myth #4: There’s No Credit After Insolvency
While your credit score might take a hit, it won’t be forever. Over time, with responsible financial management, you can rebuild your creditworthiness. Taking steps to address your insolvency can even demonstrate a positive credit history to lenders.
Myth #5: Insolvency is the only option for dealing with debt.
There are various solutions available depending on your situation. At My Insolvency, we take a deep dive into your business before offering solutions. Our comprehensive approach allows us to provide tailored advice, which might not always be insolvency.
Don’t Let Myths Hold You Back
Remember, insolvency is a financial hurdle, not a life sentence. By taking action and getting the right advice, you can overcome this challenge and build a brighter financial future.
And if you’re struggling with debt, don’t be afraid to seek professional help. My Insolvency can help you navigate this challenging situation and get back on the path to financial stability. Give us a call on 0800 009 6106 or email hello@myinsolvency.co.uk.
