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What's Holding You Back From Filing For Bankruptcy?

Posted By admin || 14-Feb-2012

What's Holding You Back From Filing For Bankruptcy?

You're getting squeezed by your debtors. There's not an hour that goes by when you don't receive harassing phone calls from collections agencies . Every time you open your mailbox, you're met by a cascade of final demands and urgent notice letters, all of which document exactly how much you owe to whom. It's enough to make you want to tear out your hair, swear off modern life, and run away for good.

If this sounds familiar to you, we only have one question to ask you: what's holding you back from filing for bankruptcy?

Reasons People Are Scared to File Bankruptcy

Locate your answer below - and get ready to be amazed by how many misconceptions you have bought into about Chapter 7 and Chapter 13 bankruptcies.

Bankruptcy Will Hurt My Finances

Really? And those mountains of credit card bills , medical debts , and other loan demands won't? Listen: these debts are designed to have you pay off as little as possible over a maximum time period (that's how creditors make their money!). That means without bankruptcy, you'll always be struggling with bad credit. With bankruptcy, you can immediately eliminate the old debt and start fresh. So which seems better: a lifelong struggle with bills, or just a couple of years rebuilding a great credit score?

Bankruptcy will Ruin My Credit For a Decade

Not likely. While there's no denying that getting a loan or credit card after bankruptcy will be harder, think of it this way: what is the likelihood of you getting a loan or credit card now? Besides, with regular payments on your utilities, mortgage/rent, and other debts, your credit rating will bounce back a lot faster. Some individuals even report getting credit card offers and loan approvals within a couple of years after filing for personal bankruptcy.

I'll Lose My Home

In personal bankruptcies (like Chapter 7 ) where your assets are sold to pay for your debts, there is a possibility that your home will be used. However, stronger federal exemptions have made this less likely. Additionally, if you file for a Chapter 13 bankruptcy , you won't lose your home at all. Add to the fact that filing for bankruptcy halts the foreclosure process, and it's no wonder more homeowners look to bankruptcy for the immediate relief they need.

Now that we've addressed your misconceptions about bankruptcy, ask yourself this: why haven't you met with a bankruptcy attorney today to see if it is the option for you?

Categories: Bankruptcy
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