Thursday, April 27, 2017

Understanding Bankruptcy and How it is Not the End

For most people, the decision to file for bankruptcy relief is a difficult one. It is a scary process a nd it can feel like that you are just giving up. 

That you will never be the same again. Well, nothing could be further from the truth. Bankruptcy doesn’t have to be the scary process. While it may be difficult and life changing, it is actually meant to help you start over. 

With that said, bankruptcy is a process that should never be taken lightly and it will likely be a process where you will need help in order to get through it in one piece.

What Bankruptcy is

Bankruptcy is a legal process that allows some people and businesses to repay or completely eliminate debts. It occurs when a person or business cannot repay their creditors. 

While bankruptcy is not usually the first option, for many individuals it is the only one that makes sense. It can help you get your life back on track. Since this is a legal process, you are going to need to hire an attorney with expertise in the field. 

Bankruptcy laws are complex. Do you need to file a Chapter 7 or a Chapter 13? Do you know the difference? A bankruptcy lawyer will work with you through the process. 

In addition to the bankruptcy filing, you should also consult with an attorney like those at the Law Offices of Barbara B. Braziel.

What Bankruptcy is not

The stigma attached to a bankruptcy no longer exists. It is not a sign that you have failed. It does not mean that you have been reckless with your finances. 

It does not mean an end to your dreams of home ownership or new cars. It is a setback. It is a setback that will take some time depending how bad your financial situation is. 

You may not be able to buy that nice house or nice shiny new car when you originally planned on it. You have to postpone those purchases. Bankruptcy is meant to help you start over and reset your finances and for you to get everything in order again.

Is There Life After Bankruptcy?

The answer is a definitive “yes.” You are not the only one to face financial difficulties. It is true that a bankruptcy record will be on your credit file for up to ten years. 

However, most people are surprised to find that even with a history of bankruptcy, lenders are often eager to extend credit. That actually makes good sense. With your bankruptcy, your debt has been eliminated. 

You now have more funds available to make your payments than prior to your bankruptcy. In many ways, you are seen as a better risk than someone with existing debt. Many people who file bankruptcy are surprised to learn that they can often purchase a new car within a short period of time. 

Most mortgage companies are willing to finance a home if you wait at least 24 months after your bankruptcy has been discharged.

Bankruptcy is not the first option for most individuals, but it is the only solution for many. Especially if you have hit some financial hard times or have owned a business that consequently went under. 

The bottom line that everyone needs to understand, is that while bankruptcy may carry that negative connotation, while it may not be as situation anyone wants to be in, it is ultimately there to help you out of the financial hole that you might be in. 

With expert legal help, you can survive a bankruptcy and face a future that is brighter than you may expect.

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