For a lot of people, bankruptcy is a scary word. The thought of facing overwhelming debt can be terrifying, especially when it means letting other people know exactly how much you owe.
You might also be nervous about what the legal bankruptcy process is like, and the negative consequences that come along with it.
Today, we are going to discuss three of the biggest fears about bankruptcy and how to get through them.
Fear #1: Calling a bankruptcy lawyer
Many people think about meeting with a bankruptcy lawyer for months or years before they finally have enough courage to make the call and set up an appointment. Many are afraid that they will have to decide to file that day, but this is not true.
When you meet with a bankruptcy lawyer, he or she will review your financial situation and then explain all of your options. In many cases, bankruptcy alternatives may be available to get you back on your feet financially. In other cases, bankruptcy may be your best option.
Either way, you have time to decide what you want to do, and your lawyer will never pressure you into doing something you are not comfortable with.
The bottom line is that there is nothing to lose by meeting with a lawyer to find out more information, especially if the lawyer offers free consultations.
Fear #2: Facing your debt
The thing about debt is that it cannot be ignored forever.
Collection agencies will begin calling, and you may even face repossession of your car or home. Creditors are relentless these days, so there really is no escape…until you face your debt and file for bankruptcy, which immediately stops creditor harassment, foreclosures and repossessions.
Additionally, you don’t need to worry about being judged. Your lawyer deals with people in your exact situation every day, and over a million Americans file for bankruptcy each year.
Fear #3: What happens after bankruptcy
Many people have heard that bankruptcy wrecks your credit or is too expensive.
Bankruptcy does cause a negative impact on your credit score, but most people who need bankruptcy already have poor credit, so it doesn’t have much of an impact. Bankruptcy also gives you a “fresh start” so that you can begin building good credit.
When the bankruptcy laws changed in 2005, it did become more expensive and more difficult to file for bankruptcy. However, it is still an option that is possible and affordable for many people. Your lawyer can help you decide if it makes sense in your situation.
Read more about how bankruptcy can help you here.