Most people have heard bankruptcy referenced in casual conversations enough to understand what it is, but that doesn't mean that everyone truly understands it. In fact, few legal proceedings seem to mystify people quite like bankruptcy can, perhaps because it's not something that everyone files. It's important to understand the facts, especially if you're trying to decide if bankruptcy is the right solution for you. Here are some things that your bankruptcy lawyer wants you to understand if you're considering a bankruptcy filing.

Medical Bills Are A Common Reason 

One of the most common reasons for people to file for bankruptcy is because of an abundance of medical bills. In fact, it's so common that you have probably heard the term "medical bankruptcy" before, too. This might lead you to think that this is a specific type of bankruptcy filing, perhaps one in which only your medical bills are included.

Don't fall into the misinformation trap. The truth is that a "medical bankruptcy" doesn't actually exist. A bankruptcy filed because of accumulated medical bills does, though. Don't be concerned about why you need bankruptcy. Just reach out to your bankruptcy law attorney for guidance on which of your debts will qualify.

Your Credit Won't Be Damaged Forever

Sometimes, people are afraid to file for bankruptcy because they fear a long-term or permanent mark on their credit. The truth is that, while bankruptcy will affect your credit negatively at first, it actually allows you to rebuild your credit much sooner than you would otherwise.

If you don't file for bankruptcy, your credit continues to suffer from negative payment history reporting until such time as you finally get everything current. That can make it difficult for you to actually improve your credit.

With bankruptcy, you'll suffer the initial hit to your score from the bankruptcy, and that filing will stay on your credit report for years, but you'll have the chance to start rebuilding with secured credit offers fairly soon afterward. Creditors know that you can't refile bankruptcy for years after a filing, so they're more likely to work with you on a credit-building approach after bankruptcy than if you just let your past-due obligations sit on your credit.

These are two of the most important things to know when it comes to filing for bankruptcy. If you're struggling to meet your financial obligations, reach out to a local bankruptcy attorney today for more help and information. They can guide you through your expectations and the facts of your specific situation.