For most people the decision to file bankruptcy is extremely difficult. First, there is the fear of the unknown. Some people fear that their credit will be destroyed forever. Others fear that they will lose their property. Yet others fear the humiliation that their friends or neighbors will find out. Some fear that they will be harassed by their creditors at court.
Although filing for bankruptcy is a very difficult and important decision, most of people's fears are unfounded. Ironically, most people's credit improves after they file for bankruptcy. The majority of people filing for bankruptcy already have fairly low credit scores. This occurs because their creditors keep reporting delinquent balances or obtaining judgments. Once a person files bankruptcy, all of their debts are generally discharged. As a consequence, there are no longer delinquent payments being reported dragging down their credit score. It's not unusual to see a person's credit score rise a 100 points approximately a year after filing for bankruptcy.
Pittsburgh Bankruptcy Lawyer, Bankruptcy Forms, Chapter 7 Bankruptcy Attorney,
Another fear people have is that they will lose their property. This fear too is unfounded for most people. The Bankruptcy Code allows people to retain most if not all of their assets. For example, a person could have $10,000.00 in the bank, or even up to a $1,000,000.00 in a retirement plan, and still file for bankruptcy. The code provides for protection for a substantial portion of a person's property in order to help them obtain a fresh start. In addition, a person can keep their car or their house as long as they agree to continue to make payments on that property.
Filing for bankruptcy is difficult for most people because of the fear of humiliation or because they believe they have failed in some way. Nobody generally makes it a strategy to file for bankruptcy. First, your neighbors and friends will not find out that you filed for bankruptcy unless they make it a habit of checking the court files. Filing for bankruptcy should be approached more from a financial point of view and less as a moral problem. Problems happen to people that often have a negative impact on their financial situation such as a divorce, illness, job termination, or substantial depreciation in the value of their house. These problems may wreak havoc on a person's finances if not addressed. Bankruptcy for an individual is not much different than for a corporation such as General Motors or Chrysler that found themselves in tough financial shape. These corporations filed bankruptcy so that they could reorganize and start becoming profitable again. What is good enough for an inanimate corporation should certainly be good enough for a person.
Some people worry about being harassed at court by their creditors. What many of these people don't realize is that bankruptcy stops creditors from harassing them. If a person is unable to pay their bills, a creditor can obtain a garnishment of their wages or seize their property such as a car or household items. Bankruptcy stops creditors from collecting. Although creditors have the right to appear at court to question a Debtor, it is rare that they do.
Filing for bankruptcy is a decision that a person should make only after consulting a professional with expertise in the field. A respectful and qualified bankruptcy attorney will understand that this is an important and difficult decision. Most bankruptcy attorneys offer a free consultation to help one explore and understand their options with no further obligation.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Attorney Fees
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment