Some of us are more prone to worry than others, but most people can agree that being in debt that is impossible to pay off can be scary. Some of the fear can be traced to untrue myths that people often share about bankruptcy, such as people becoming destitute and homeless by filing. Even if your fears aren’t that extreme, you may wonder what happens to your car or home if you file. You may feel that bankruptcy is probably the best option for you to make a new start, but avoid filing because you aren’t sure of the actual consequences of that decision. Let’s get together so that I can give you an accurate idea about how bankruptcy works and the best ways to rebuild your credit after filing.
While there are some real consequences to filing bankruptcy, for many people, it allows them to get their debt under control and make a new financial start. Additionally, as we prepare your case, we’ll use the many available exemptions to protect your property and assets and minimize your losses. If you’re considering bankruptcy, it’s likely that you’ve already missed some payments or have had accounts sent to collections. Once you file bankruptcy, the automatic stay will go into effect, which means you will have a temporary break from making payments. Therefore, you won’t have any additional missed or late payments on your credit report.
After bankruptcy, there are specific steps you can take to rebuild your credit and improve your score. Many people end up with the best credit score they’ve ever had within just a few years. Even with a bankruptcy on your credit report, the responsibility you’ve shown with new credit could make purchasing a car or home in the future more affordable.
Aside from the financial consequences of bankruptcy, some people may worry what others will think of them if they find out about their financial difficulties. Unfortunately, there are stereotypes about the kinds of people who file bankruptcy, but the truth is, most people file due to medical bills, job loss, or divorce, and more and more people are coming to understand this truth.
Bankruptcy is a legal right that gives struggling consumers a way to overcome challenges. There is no shame in taking proactive steps to improve your situation by whatever means necessary. Additionally, there’s no reason to share your situation with anyone who you don’t think would be supportive. While bankruptcy filings are considered public records, there’s no reason for them to be public knowledge.
Taking Positive Steps
Don’t let fear keep you from taking positive steps toward becoming debt free. If you’re unsure if bankruptcy is right for you, let’s get together to discuss your alternatives and make a plan. I’m here to confidentially answer your questions and help you create the best strategy for improving your financial future.