IF you are struggling with serious debt problems and the idea of filing for bankruptcy has crossed your mind, like most people, you may have some “fears” about bankruptcy that you have not been able to discuss with anyone. Usually, these “fears” stem from what we have heard about bankruptcy from co-workers, family or friends. Are these “fears” really legitimate or are they, in most cases, baseless? This is an important question to ask because fear is the number 1 reason that stops a lot of people from needed action that can change their lives for the better.
I think what stops most people from even exploring bankruptcy as a possible alternative is the FEAR OF THE UNKNOWN. As humans, I think it is normal to fear things that we don’t understand. At times, however, if the fear is not based on reality, it could be crippling and completely unnecessary. Have you ever been in a situation in your life where you knew you had to do something but you were simply paralyzed with fear?
People with debt problems are often like that. For fear of making a mistake, they end up doing nothing! So months and years go by and their situation just keeps getting worse and worse. These people have come to a point of desperation and they find it difficult to keep a positive outlook in life. When they wake up in the morning, they don’t even look forward to their day because they know they will be facing the same problems that they always do. Their debt problems keep them up at night. They have lost the desire to even plan for the future as they see no light at the end of the tunnel.
Now, don’t get me wrong. I am not saying that bankruptcy will solve all your problems in life. As a matter of fact, there are situations where you shouldn’t even consider bankruptcy if other options are available. But if it is the right solution to your problem, fear that is not grounded in reality could keep you stuck in your situation. What “fears” am I talking about? Well, let me talk about a few of them.
Fear No. 1: “My life will never become “normal” again after filing for bankruptcy.” Reality: That depends on what you mean by “normal”. If you consider living with creditor harassment, sleepless nights and constant worrying about your finances more “normal” than filing bankruptcy to make creditors leave you alone and so you can have peace of mind again, then I can see your point. Otherwise, worries about having an “abnormal” life after bankruptcy are baseless. Every year, more than 1 million people in the United States file for bankruptcy to get out of the shackles of crippling debt and start a new life. Life happens. Bankruptcy is a fact of life.
Fear No. 2: “I will never be able to buy a house or car again if I file for bankruptcy.” Reality: Hogwash. Ask any mortgage broker and they will tell you the truth. The reality is that if your bankruptcy is at least 2 years old, most banks will still give you a loan to purchase a home if your meet all other credit requirements (i.e., good employment, salary, sufficient down payment, etc.) If buying a new or used car, having a bankruptcy on your record is not a problem provided that your case has been discharged. While it is true that you may have to pay high interest rates in the beginning, over time you will be able to rebuild your credit as you establish creditworthiness. Over time, credit card companies will also start sending you credit offers again. It is your responsibility to take care of your credit after bankruptcy and make sure that you don’t make the same mistakes again as you may have made the first time you filed for bankruptcy.
Fear No. 3: “Filing for bankruptcy is embarrassing because everyone will know that I filed.” Reality: Wrong. Your creditors are notified by the court when you file. While bankruptcies are a matter of public record, no one will know about your bankruptcy unless they are deliberately trying to find information on you by searching court records. Co-signors are listed on the petition and are notified by the court just so they are given notice to possibly protect their rights but other than these people, no one else but your creditors will receive a notice. Your employer is not notified unless your employer is also a creditor or is holding assets on your behalf.
These are just some of the “fears” that I see every day which may stop people from taking action to turn their situation around and protect what little they may have. My advice to you is that if you are not sure about any of the practical and/or legal aspects of your case, you should consult with an experienced and knowledgeable lawyer who can address all your concerns and explain the advantages and disadvantages of bankruptcy filing. In a lot of cases, your unfounded “fears” may deprive you of the solution that you desperately need. If these fears are groundless, shouldn’t people be more fearful of seeing their situation get worse? Shouldn’t they be more fearful of not ever having a secure financial future, being trapped in debt for the rest of their lives?
For a free attorney consultation, please call our office at Toll-Free 1-866-477-7772. We have offices in Glendale, Cerritos, West Covina and Valencia.
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None of the information herein is intended to give legal advice for any specific situation. Atty. Ray Bulaon has successfully helped over 4,000 clients in getting out of debt. For a free attorney evaluation of your situation, please call Ray Bulaon Law Offices at TOLL FREE 1-866-477-7772.
