Adam Law Group Blog

Why You Should Not be Afraid to File for Bankruptcy

 

If you are interested in filing for Chapter 7 or Chapter 13 bankruptcy, it is common to feel scared about what lies ahead. The fears and uncertainties that people have about the process, however, are often unfounded. Soon after filing for bankruptcy, many people discover that the process is not as bad as they thought it would be. In the hopes of squashing any fears that you might have about bankruptcy, the following will examine the realities behind some of the most common fears about the process.

Filing for Bankruptcy is Embarrassing

Many people believe that they must uphold all of their obligations. While it is noble to strive for this goal, some people are simply unable to do so when financial difficulties occur. As a result, it is important to understand that many people undergo the bankruptcy process each year due to no fault of their own. Rather than be hard on yourself about having to file for bankruptcy, you should not be embarrassed.

You Will Never Be Able to Buy a House after Filing for Bankruptcy

Many people who pursue bankruptcy have already witnessed a decline in their credit score. By filing for bankruptcy, however, you begin the process of gradually rebuilding your credit score. Some people even receive credit card offers immediately after filing for Chapter 7 bankruptcy. While you should never sign up for these cards, they often reflect that your credit score has increased. It is important to remember that filing for bankruptcy gives you a second chance at building a strong credit history and that you will one day be able to buy a house.

You Will Lose Personal Belongings as a Result of Filing for Bankruptcy

Due to exemptions, people who file for bankruptcy often retain ownership of things that they would like to keep. If you own a home and are unable to make the payments, a bankruptcy will not allow you to retain ownership of the home. In many situations, however, people discover that the bankruptcy process frees up money that was being spent on other bills so that they are able to stay up to date with payments on a home.

You Will Never Have Good Credit Again

This is also simply not true. Instead, many people discover that immediately after filing for bankruptcy, they receive credit card offers in the mail. This is because in many situations, people who file for bankruptcy have become good credit risks because they no longer owe most of the debt that they owed before filing for bankruptcy. Instead of not having credit after filing for bankruptcy, the larger challenge faced by many people after filing for bankruptcy is whether they will be able to avoid the spending habits that made them experience financial difficulties.

Speak with an Experienced Bankruptcy Attorney Today

If you are a Florida resident who has questions or concerns about the bankruptcy process, do not hesitate to contact the Adam Law Group today to schedule a free initial consultation.