In our last two blog posts, we discussed some points related to credit cards and your options for dealing with overwhelming credit card debts. We briefly mentioned how some people might opt to file for bankruptcy to control credit card debt and get a fresh financial start. Some people might balk at the idea of filing for bankruptcy because they don't fully understand some of the finer points of bankruptcy.
Many people think they will lose everything when they file for bankruptcy. That isn't the case. There is some property that you will be able to keep even if you file for bankruptcy. We can help you learn what property will be exempt from the bankruptcy proceedings so you can decide if bankruptcy is right for your needs.
Another common misconception is that your creditors will continue to bother you after you file for bankruptcy. When you file for bankruptcy, an automatic stay goes into effect. Once this occurs, creditors can't contact you with collection attempts. We can help you learn how to handle creditors who ignore the automatic stay. In some cases, the court might impose fines, penalties and punitive damages when creditors fail to obey the automatic stay.
Some people think that they won't be able to get credit after they file for bankruptcy. The truth is that bankruptcy does impact your credit score. You will likely have to work on rebuilding your credit, but that will be possible as long as you act in a financially responsible manner.
If you have specific concerns about filing for bankruptcy, we can help answer those questions. We want you to be as informed as possible if you decide to file for bankruptcy.