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Filing Bankruptcy Can Be Scary

Filing Bankruptcy Big Step


If bankruptcy has crossed your mind as a resolution to your serious financial issues, don’t feel badly if it makes you a little scared! For a very long time the word bankruptcy has had a negative vibe to it.  Much of this is due to false stereotypes, horror stories, or rumors from people who have not really experienced it.The truth of the matter is that filing bankruptcy doesn’t have to be terrifying.  It is a big step, however serious debt problems are going to require some action or they will only get worse. If Chapter 7 or Chapter 13 bankruptcy is truly fitting to resolve your personal financial situation, then it can be a huge relief and fresh start. Here’s what you can do to calm those nerves…

Hire a Local Bankruptcy Attorney

Not only should you look for a local bankruptcy attorney who is convenient for you, but also one who has all of the qualifications.  For example, Debt Advisors Law Offices has been 100% dedicated to bankruptcy cases for nearly twenty years. Finding a bankruptcy attorney who has that kind of experience is the key.  Do some quick research online. Example: Look at the firms online reviews and find out what others are saying about their experiences. Once you have found an attorney who can provide solid debt advice, you’ll be far more comfortable with the process.

Request a bankruptcy consultation with Debt Advisors

Coming Out of the Dark

Don’t be scared that your bankruptcy decision may be revealed. It is true that bankruptcy cases are public record. Putting that fact in perspective is important. Unless you’re a high-profile public figure, your bankruptcy case is not going to be newsworthy.

If you’re truly in desperate financial situation, the people closest to you probably already know. The non-stop irritation of bill collectors and the negative weight that financial debt has on a family is crushing. What matters the most is that you take the brave step towards obtaining a resolution. Bankruptcy can eliminate debt, stop those harassing phone calls, and provide your family a sense of peace.

Learn More About Bankruptcy

Don’t fear what you’re going to lose until you hear what is to be gained. For example, only a very small percentage of bankruptcy cases require debtors to turn over property to a bankruptcy trustee. You can buy a home, purchase a car, and improve your credit after bankruptcy. For many folks, these things happen even sooner than what they thought. Just because bankruptcy stays on your credit bureau report for many years doesn’t mean that you’ll be financially chained for that period of time. There are plenty of lenders out there that work with people who have recently filed bankruptcy. Once you’re debt-free your resources open up. Often times, this new financial situation will encourage lenders to reach out to you. As soon as you start to build your credit score, credit rates will decline as well.

Will my social security benefits be protected in bankruptcy?

Social Security Benefits

Everyone would agree that a guaranteed monthly income is nice to have.  Social Security Income disability benefits are designed to assist people with their basic care and maintenance such as food, clothing, and shelter.By the age of 62, many people have paid into the system for over 40 years and are ready to cash in.  There are far more benefits to waiting longer into (FRA), full retirement age of 65-70, if you can afford it.  Evaluate your decision based on how much you’ve built in savings, additional sources of income, how long you expect to live, etc.   Keep in mind that your cost of living allowances, (COLA), are increased based on how soon you started collecting.


I’ve been collecting social security, now I need to file bankruptcy

Many retired people have sizeable debt burdens, and no remaining work years to pay it down.  Your attorney will understand that retired debtors have a fixed income.  They will also acknowledge that social security benefits are often necessary to keep in-tactso that the retiree can continue supporting themselves and their families. There are both Social Security and bankruptcy laws,which include state and federal exemptions, to protect social security benefits.

Lump sums for disability payments under social security

If lump sums are deposited for disability payments, they must be traced back to where they came from.  If the deposited amounts exceed that which is needed for your basic living expenses, a Chapter 7 trustee may be able to take a portion of that money.  Although there are bankruptcy and Social Security laws to protect you, they can be complicated. Clearly, the complications are a good reason to contact an experienced bankruptcy attorney who understands both state and federal laws pertaining to both social security and bankruptcy.

Overview of Future interests that may need to be disclosed in a bankruptcy petition:

Stock Options    Trust funds         Tax refunds        Pensions              401K Plans           Retirement plans

Lawsuits you have against other individuals         Assets you expect to inherit from someone who recently died

Speak with a trusted bankruptcy attorney

Making the call for a consultation is often the most difficult step, but a big one when it comes to securing financial freedom!  The bankruptcy process is as little as $100 to get started.  A payment plan for the balance of your attorneys’ fees and filing fees will be agreed upon upfront.  Learn more about Chapter 7 and Chapter 13 bankruptcy online, or call toll free:  888-660-4513.  You can trust a Debt Advisors Attorney.