Sunday, November 4, 2012

Filing For Bankruptcy Can Be Quite Liberating

Is that far too strong of a claim? Bankruptcy is something that we should never have to go through in life. Especially if you own a company that is struggling with its debts. Good thing there are pre pack administration to save such businesses. We don't think so. It appears that a lot of the people who are filing for bankruptcy today get a bad rap for doing this. However , there are two things to bear in mind. One, very few people live their lives with the intention of one day filing for bankruptcy. Two, the bankruptcy process is not an easy, free pass.

However , the process is tremendously rewarding for those who are finding it difficult to pay their debts. With Chapter 7 you can get a clean slate. With Chapter 13 you can get shelter and restructure your debt without losing your resources. If you're in serious financial problems, these are two great options to think about. Let's go through a few of the uninformed claims people make regarding bankruptcy.

Debunking The False Myths

The most popular myths is the fact that you'll be totally broke after filing. Even with Chapter 7, through which your resources are liquidated, this is simply not a true claim. Anybody who believes this has clearly never been through the bankruptcy process, and is certainly no bankruptcy attorney. When you file, you are seeking refuge, a safe haven. The courts are not going to throw you out on the streets with no possessions in your name. You will retain essential assets.

Another popular myth is that you'll never get a decent job. Any good bankruptcy attorney should be able to dispel this myth for you. After you are through filing for bankruptcy, yes, ıt'll appear on your credit report for a few years. However , when an employer is looking toward you, it is highly unlikely they will pull up your credit report. They might pull up your credit score, however your score won't reveal your previous state of bankruptcy.

The third popular myth is that you'll never get credit again. Absurd. As you have likely learned, credit card companies are all too eager to get some credit in your hands. After you file, you'll probably be amazed how fast the credit offers start filling up your mailbox. Give it a while... you will see! The truth is, credit card companies are raking it in. There are very few people they will not solicit their services to. You may have to spend some time proving yourself before you start getting good credit again, but it will occur.

If you are feeling like you're in over your head with debt, consider filing for bankruptcy. Speaking with a bankruptcy attorney is one of the best ways to get started!

1 comment:

  1. People would instantly think that they are on a permanent downward spiral after filing for bankruptcy. That is just not right. Having a state of mind like that is certainly not helpful. Someone who filed for bankruptcy should already be looking forward on how is he/she gonna regain what they had lost.

    Jaden Allred