Why Would Someone Avoid Bankruptcy?
There may be legitimate reasons to avoid bankruptcy. If you can handle your debt without filing, then bankruptcy is really not needed. However, for those who have excessive debt, bankruptcy may be the only solution. It is recommended to speak to a bankruptcy lawyer to find out if bankruptcy can help you with the debt that you owe.
Many people each year file bankruptcy to resolve and eliminate their overwhelming debt. Those clients often express the relief they feel in knowing that their debt will be handled as quickly and painlessly as possible. However, we’re not going to say that the process is “easy” because we know that making that first call to your bankruptcy attorney can be a difficult first step.
Reasons Why You May Choose Not to File Bankruptcy
• Fear of the unknown. We think you will find that the fear subsides when an adequate amount of information about bankruptcy is obtained to ensure a solid decision can be made. We can help you overcome fears, and gain access to information through a free initial consultation with one of our bankruptcy lawyers.
• Debt load is small. “Debt” levels may be interpreted differently from one household to the next. Debt compared to income will vary. Furthermore, if the ability to repay debt is not there, then bankruptcy may still be a good option. (Even if the debt is perceived to be small.) If you are unsure, seek an experienced attorney help make this determination with you.
• It will ruin credit scores. This is one of the biggest myths. In fact, if you are an ideal candidate for bankruptcy, your credit score is likely suffering right now. Bankruptcy can stop the downward spiral of credit ratings and help your scores to go up over time. In addition, we offer our clients the 720 Credit Score Program.
• It is open public record. Bankruptcy is a legal proceeding that is recorded in public court listings. But, unless you are a celebrity, a major corporation, or you have a family member who religiously reads public court records, there isn’t too much to worry about. The information isn’t printed every day. The financial future of you and your family should be more important than pride.
• We will lose everything. Even a chapter 7 bankruptcy, otherwise known as liquidation bankruptcy, ordinarily allows individuals to protect or exempt all of their property. Depending upon your personal financial situation and the type of bankruptcy that is filed, you ought to be able to keep your car and your home.
Is Bankruptcy Right For You?
There are many myths about bankruptcy that put fear in front of facts. Learn the truth about bankruptcy. For many, declaring bankruptcy and committing to better money management are the best avenues towards ensuring a stable financial future. To find out if bankruptcy is the right option for you and your family, make the call today. The bankruptcy attorneys at Debt Advisors Law Offices will evaluate your situation and provide a best scenario or if available, alternative options to consider.