| For most people the decision to file bankruptcy is | | | | generally makes it a strategy to file for bankruptcy. |
| extremely difficult. First, there is the fear of the | | | | First, your neighbors and friends will not find out that |
| unknown. Some people fear that their credit will be | | | | you filed for bankruptcy unless they make it a habit of |
| destroyed forever. Others fear that they will lose their | | | | checking the court files. Filing for bankruptcy should be |
| property. Yet others fear the humiliation that their | | | | approached more from a financial point of view and |
| friends or neighbors will find out. Some fear that they | | | | less as a moral problem. Problems happen to people |
| will be harassed by their creditors at court. | | | | that often have a negative impact on their financial |
| Although filing for bankruptcy is a very difficult and | | | | situation such as a divorce, illness, job termination, or |
| important decision, most of people's fears are | | | | substantial depreciation in the value of their house. |
| unfounded. Ironically, most people's credit improves | | | | These problems may wreak havoc on a person's |
| after they file for bankruptcy. The majority of people | | | | finances if not addressed. Bankruptcy for an individual |
| filing for bankruptcy already have fairly low credit | | | | is not much different than for a corporation such as |
| scores. This occurs because their creditors keep | | | | General Motors or Chrysler that found themselves in |
| reporting delinquent balances or obtaining judgments. | | | | tough financial shape. These corporations filed |
| Once a person files bankruptcy, all of their debts are | | | | bankruptcy so that they could reorganize and start |
| generally discharged. As a consequence, there are no | | | | becoming profitable again. What is good enough for an |
| longer delinquent payments being reported dragging | | | | inanimate corporation should certainly be good enough |
| down their credit score. It's not unusual to see a | | | | for a person. |
| person's credit score rise a 100 points approximately a | | | | Some people worry about being harassed at court by |
| year after filing for bankruptcy. | | | | their creditors. What many of these people don't |
| Another fear people have is that they will lose their | | | | realize is that bankruptcy stops creditors from |
| property. This fear too is unfounded for most people. | | | | harassing them. If a person is unable to pay their bills, a |
| The Bankruptcy Code allows people to retain most if | | | | creditor can obtain a garnishment of their wages or |
| not all of their assets. For example, a person could | | | | seize their property such as a car or household items. |
| have $10,000.00 in the bank, or even up to a | | | | Bankruptcy stops creditors from collecting. Although |
| $1,000,000.00 in a retirement plan, and still file for | | | | creditors have the right to appear at court to question |
| bankruptcy. The code provides for protection for a | | | | a Debtor, it is rare that they do. |
| substantial portion of a person's property in order to | | | | Filing for bankruptcy is a decision that a person should |
| help them obtain a fresh start. In addition, a person can | | | | make only after consulting a professional with |
| keep their car or their house as long as they agree to | | | | expertise in the field. A respectful and qualified |
| continue to make payments on that property. | | | | bankruptcy attorney will understand that this is an |
| Filing for bankruptcy is difficult for most people | | | | important and difficult decision. Most bankruptcy |
| because of the fear of humiliation or because they | | | | attorneys offer a free consultation to help one explore |
| believe they have failed in some way. Nobody | | | | and understand their options with no further obligation. |