Every year over a million people file bankruptcy to help them overcome financial problems that have become too severe to control. It is understandable that many people hesitate to file bankruptcy as they seek other solutions. There is a stigma attached to bankruptcy and many believe that filing will destroy their lives. Luckily, this is not true. Here is the truth about what it is really like to take this legal step and visit a debt relief bankruptcy lawyer.
Myth #1 – People lose everything when they file bankruptcy.
Some people will lose their homes or their vehicles when they file, but the majority do not. There are a couple of reasons why property is lost during a bankruptcy. Every state allows exemptions up to a specific amount. If someone has more equity in a home or vehicle than what is legally exempted, the property may be taken to pay creditors. In other cases people cannot afford to make the payments even after the discharge of their debts. Everyone else can retain their property as long as they continue to make their payments according to their original agreements.
Myth #2 – They will never get another loan.
Loan approvals require a favorable credit score. By the time most people reach the point of bankruptcy they will no longer qualify. Credit scores generally begin to improve within a few months following a bankruptcy and many people will find credit card companies and loan officers willing to work with them much faster than they expected. Careful spending and attention to paying bills on time will boost credit scores quickly.
Myth #3 – Everyone will know about the filing.
It is unusual for people to discover on their own that someone has filed since very few people have any major outward changes following the process. Some news organizations do publish recent filings, but each notice is generally published only once. Employers and landlords are not notified. Only creditors listed in the bankruptcy receive notice.
A debt relief bankruptcy lawyer does not judge their clients. They will have seen people with more debt, less debt and the exact same circumstances. They have clients that file because of medical problems, gambling issues and divorce. Their only concern is to make certain that each client has the opportunity the law allows to get a fresh start. Visit Chriscarouthers.com to learn more about bankruptcy options and to schedule a consultation.
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