For several people, the decision of filing for bankruptcy can be extremely difficult. While you know that life could get better once you do it, there is still the fear of the unknown. Some people fear that their credit will be destroyed, others fear that they will lose their property, and some fear the humiliation if their family and friends find out. The reality is that problems happen to people and it can make a negative impact on their life. The only way to fix the problem is by dealing with it. That being said, if you think you are in a bad financial state, then it is best to call a Baltimore bankruptcy lawyer who can help you understand your rights and options.
No one should be choosing not to file for bankruptcy due to fear. It’s time to face your fears and work with a Baltimore bankruptcy lawyer so you can make a smart decision for you and your family. To help you face these fears, below are a few of the most common fears about bankruptcy. This may help you find out that you have little to be scared of.
• “I will not get credit”: Many people worry that once they file for bankruptcy, it will forever impact their ability to get a mortgage, a card loan, or credit of any kind. While many people assume it takes at least 10 years for your credit to recover, you can actually get new credit right after your discharge is granted. You may be eligible for a mortgage within 2-4 years after your discharge depending on the type of mortgage you opt for. While the rates will not be as good as someone with a perfect credit, you can still improve your credit over time by paying your bills and taking responsibility.
• “I will lose all my property”: Only about 2% of bankruptcy cases will involve individual debtors asking you to turn over your property. Fortunately, your bankruptcy exemptions can protect your property from many debts. In fact, a Chapter 7 case is a no-asset case. This means that the debt does not have any property available to be liquidated. You also have the option to reaffirm some of your secured debt if you prefer to continue making payments rather than give up your property.
• “Everyone will find out that I’m bankrupt”: While bankruptcy filings are a part of the public record, you do not have to worry about making it in the headlines of a newspaper. Only public figure and newsworthy bankruptcies will be divulged publicly. You also do not need to worry about your family and friends finding out unless you choose to tell them. Only the creditors and certain government agencies will be informed of your filing and it will be kept confidential.
• “I will be seen as a bad person”: Many people who go bankrupt feel like they are letting down their family, friends, communities, and more importantly, themselves. This is because there is the stigma of making a person look irresponsible if they file for bankruptcy. This is something that many people fear; however, the situation is not always controllable. In fact, many bankruptcies are caused by a job loss, serious illnesses, or other circumstances that can affect anyone. You should not feel guilty about that. You just have to move on and make sure to never get in the same situation again.
• “Filing for bankruptcy will cause more family problems and divorce”: Bankruptcy can eliminate all your debt and financial stress. It is the solution to the problem, not an additional problem. While it is difficult to do, it will be a huge relief to you and your family. The absence of debt can give your relationship a fighting chance.
• “It is too hard to file for bankruptcy”: Sure, there is a lot of paperwork involved. However, a skilled bankruptcy lawyer by your side can make the process much smoother. Nowadays, most of the things you can do is already processed online which can minimize paperwork.
Do not live in fear. Filing for bankruptcy means you are acknowledging the fact that you need some help and that you are making a responsible decision to move forward. You can discuss your fears with a Baltimore bankruptcy lawyer before deciding if filing for bankruptcy is right for you.