The thought of filing for bankruptcy can be nerve-wracking for many who are in dire financial straits. However, bankruptcy can be a useful tool for you if you are trying to get your finances back in order. The following are some things to help ease your mind about the process:
Bankruptcy Does Not Permanently Damage Your Credit
The first thing many people think about is their credit score when considering bankruptcy. If you are considering bankruptcy, it is likely your credit has already taken a hit. Bankruptcy does leave a mark on your credit, but you can overcome and rebuild your credit afterwards.
Once you have filed for bankruptcy, you have a fresh slate to rebuild your credit. As long as you make all your payments on time, your credit will eventually recover.
You Do Not Lose All Property
Another concern is the fact that you have to return your property. You do not automatically have to turn in your house keys and your car. You have the option of exemptions, which allow you to maintain some of your assets. You can file an exemption for your house, your vehicle, and any high-value sentimental items.
You and Your Spouse Do Not Have to File
Another thing to think about is that you and your spouse do not have file bankruptcy. If the assets are primarily in one person's name, only that person has to file for bankruptcy. If the other spouse has no assets and has good credit, he or she can continue to get credit or loans if necessary. However, be careful when doing so, as you do not want to end up in the same financial predicament.
Your Creditors Will Not Call You
Those considering bankruptcy also worry about constant calls from debt collectors. If you are filing for bankruptcy, the creditors have to stop calling you. An automatic stay goes into effect. This means the creditors cannot call you to collect debt. This protects you from any form of harassment by way of letters, phone calls, and the like. If a creditor continues to call you after filing bankruptcy, you need to contact your attorney, as the debt collector is in violation of the law.
Filing for bankruptcy is a complex process, and you have to make your choice carefully. If you are considering bankruptcy, be sure to contact reputable bankruptcy lawyer services to get the process started.
