Common Fears Related to Filing Bankruptcy
With the way the economy is today many people are being faced with the dreaded decision of having to file bankruptcy.
When bills are higher than the money coming in, as is the situation for many individuals today, sometimes the only way to stop the vicious cycle is to choose bankruptcy. Although many people are afraid that doing this can cause more problems for them, most of these fears are not real.
Some of the common fears related to filing bankruptcy are:
Filing for bankruptcy will hurt the individual's credit for 10 years or more.This is untrue. Although bankruptcy does stay on one's credit for 7 to 10 years, rebuilding credit can begin immediately after the bankruptcy is discharged.
Everyone will find out about the bankruptcy.This is also not true. Once bankruptcy is filed it does become public record, although the only people who would discover this information are people that have access to the court records.
The new bankruptcy law prevents individuals from filing.This is false. The method of bankruptcy did change with the new reform act, but it does not prevent individuals from filing. The bankruptcy reform act changed the qualification for the types of bankruptcy that an individual can file, although most people still qualify the same as before the bankruptcy reform act was initiated.
Filing for bankruptcy makes you a bad person.This is definitely not true. It is estimated that over a million individuals file for bankruptcy every year. These people are not bad, they just found themselves in a bad situation and bankruptcy is a way to get past it and start over with a fresh beginning.
You are allowed to choose what debts to put into bankruptcy.This is not true. When filing bankruptcy all debts must be listed. Even if you choose to want to keep paying certain creditors, it is mandatory that every debt be included.
Filing for bankruptcy is a difficult process.
This is untrue. Although there is plenty of paperwork that is involved, hiring a bankruptcy lawyer can make the process easier. The option of filing electronically is also available today, which can minimize the paperwork on the individual's part.
With these common fears that are related to filing bankruptcy untrue, choosing the option of clearing debts with bankruptcy can be a smart choice for starting over with a clean slate and keeping debts in proper ratio with income.If you want to start clearing up your debts without filing bankruptcy, you can also choose to use a consolidation service and Clear Bankruptcy from your life.
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