It’s easy to feel intimidated when you’re having financial troubles, dealing with creditors, and considering bankruptcy. This can be magnified if you’re unfamiliar with the bankruptcy process or the long-term consequences of filing. I can help clear up any misconceptions you may have about bankruptcy and how it will affect your finances and life. Then you’ll feel confident about moving forward if that truly is the best course of action for you. If you do choose bankruptcy, I’ll be with you every step of the way to make sure you’re informed and educated about what to expect next.
I can help clear up any misconceptions you may have about bankruptcy and how it will affect your finances and life. Then you’ll feel confident about moving forward if that truly is the best course of action for you. If you do choose bankruptcy, I’ll be with you every step of the way to make sure you’re informed and educated about what to expect next.
Myth vs. Fact
You may have heard horror stories about bankruptcy or believe it’s just not a viable solution to your debt woes. Let’s set the facts straight:
- “I won’t be able to buy a car or house for 10 years.” – This can be an understandable fear, but the good news is that you can begin to rebuild your credit as soon as your bankruptcy case is resolved. I recommend starting with a small, secured credit card that you pay off completely each month. As your credit score improves, you’ll be able to take out an auto loan, and in a few years, you could qualify for a new mortgage. You’ll need to be prepared to have a large down payment and pay a high interest rate, but you can refinance later as your situation improves.
- “Bankruptcy will solve financial troubles.” – Just like the negative aspects of bankruptcy are not as severe as you may think, the benefits also have limitations. Bankruptcy should not be seen as a “get out of debt free card.” Bankruptcy cannot discharge all kinds of debts and it does lower your credit score, so you will still need to work within a budget to stick to your required payments and avoid more debt in the future.
- “I don’t have enough debt to file bankruptcy.” – Some people put off filing bankruptcy when they really need to because they believe they don’t have enough debt to file. There are actually no minimum amounts of debt required to file; it just depends on your income, debt, and overall financial situation if bankruptcy will benefit you. When we meet, we’ll conduct the MEANS TEST to determine with Chapter of bankruptcy is the best fit for you. We’ll also explore alternatives to bankruptcy to help you come up with the best possible plan.
- “People will find out I filed bankruptcy.” – While it’s true that bankruptcy filings are public record, that doesn’t mean it has to be public knowledge. Finances are a private matter, and no one needs to know unless they are pulling your credit for some reason. Still, you may want to share your struggles with trusted friends or family members. Then they can support and encourage you as you rebuild.
- “Filing bankruptcy is too confusing.” – The person filing bankruptcy does hold the responsibility for taking the necessary steps to get their case resolved, but a professional bankruptcy attorney can help the process go smoothly. I’ll make sure you have a list of the tasks you’ll need to accomplish, such as completing your credit counseling courses, and any appointments you’ll need to keep, such as your 341 meeting.
If you’re uncertain about filing bankruptcy, the best way to proceed is to get the facts about the process, benefits, and consequences. I’d be glad to meet with you to help you make a proactive plan for putting your debt behind you.