Bankruptcy Myths Busted

Filing for bankruptcy is never an easy choice but sometime the only option that one has. Most people are not clued up on bankruptcy; they are only aware of its ability to clear debts and give you a new start financially.

We would like to share some tips with you regarding this that can help you make an informed decision.

1. Many consumers fear that even after filing for bankruptcy they will still be contacted by debtors but this is not the case. When you file for bankruptcy an automatic hold is put on your debt thus not allowing debtors to collect their outstanding debt. This prohibits them from even calling or trying to collect it in anyway.

2. Consumers fear that this may affect themselves as well as their family members and put some strain on these family relationships. As we all know that financial issues can have a strain on any family especially when there are mouths to feed and you are struggling to do so. While bankruptcy does not have a direct impact on your family or should cause drama it can actually a new start for your and your family.

3. People often fear that a trustee will come and seize all their assets but this is not true at all. While it is the trustee duty to seize assets they are not able to seize all your assets. There are many procedures surrounding this matter and factors that need to be considered before any assets is seized to pay your debt. There are also other options such as making arrangements to pay your debt .

That is why it is advisable to approach an attorney before filing as they will be able to take you through all the procedures and explain to you how this really work. They will even be able to assist you on finding a better solution when it comes to repayments.

4. Many people have the fear of being unable to file for bankruptcy again after they have done so a first time but this is not true. If you are eligible to apply again you may do so. This will also not affect you ever getting credit it. When filing for bankruptcy it merely mean that you will have to prove that you can pay so that your credit score and rating can increase. Many people after filing for chapter 7 bankruptcy are able to apply for mortgage loans after two years.

5. If you not sure about whether to file or not it is best to consult a bankruptcy attorney to assist. While many people believe that this will for you to apply it is not the case it will only allow you to make an informed decision.

Always ensure that you know the facts before applying or filing for bankruptcy, because there are many myths out there. Always ensure that you seek advice from the professionals and if need be get them to file on your behalf. Bankruptcy is not a death sentence for your credit but more of a revival operation in which you are blessed with a new start. So make the right choice today.

Write a Reply or Comment

Your email address will not be published.