Worried About Bankruptcy?

: Reese Baker & Associates

  Filed under: Filing bankruptcy

worriedFiling for Bryan bankruptcy is not an easy decision, and it may not even be the best option for everyone. However, the process is intended to be a resource of help and solutions for those dealing with mounting debt burdens and financial hardship. For some, the desire for debt relief also comes with a lot of worry and stress, but it doesn’t have to be this way.

Much of what people fear about the bankruptcy process can be traced back to false information, or a lack of information about bankruptcy. It isn’t uncommon for people to fear losing assets, the public display of their filing information, and the risk of credit damage. Here are the truths behind these common worries:

I Will Lose Everything

False. None of your assets or property is at risk of liquidation in a Chapter 13 bankruptcy, as long as you keep up with your payment plan. Bankruptcy exemption laws offer a wide range of protection over much of your property in a Chapter 7 bankruptcy. The bottom line is that only the court can determine what, if any, of your assets will be used to satisfy debtors. Further, essential living items and fund accounts are always granted immunity.

Everyone Will Find Out About It

Typically, No. When you file for bankruptcy your information is considered public in the fact that it is reported to the court and on the court docket, which means that anyone specifically searching for the information could find it. However, this rarely means broadcasted in any form or medium that calls attention to you or your case. Employers also rarely find out unless there is a need to check your credit report. The bottom line is that most people find their filing goes unnoticed until they decide to say something to others.

I Won’t Be Able To Get Credit Again

False. Most people find that their credit actually improves after a debt discharge, leaving them with a clean slate to rewrite a positive credit history. Further, there is an entire market of lenders who offer lines of credit specifically to post-bankruptcy consumers, but this doesn’t mean you should take out that loan right away. Like anything in life, take your time to plan and consider your next credit move before making any big decisions.