Three Unfounded Bankruptcy Fears and the Truth Behind Them
At California Bankruptcy Relief we work with people at every stage of their financial lives. In some cases, they have been living under heavy debt for decades and are finally coming around to taking a step to change their situation. Others have had a specific event recently cause their financial troubles. One of the reasons that people often tell us they were hesitant to contact us is because they were afraid.
This fear of bankruptcy can cost you thousands of dollars and a lot of unnecessary worry. At California Bankruptcy Relief we are going to cover three of the most common fears people have about filing bankruptcy and the truth behind them. Once you have read them through, please contact us at (888) 748-0025 to get your free bankruptcy consultation.
- Losing control of your finances
- Your future credit will be ruined
- People will know you filed for bankruptcy
If you file Chapter 7 bankruptcy, it is true that you will be signing over ownership of many assets to a trustee who is acting for the benefit of your creditors. We understand why this can be a scary thought. However, it is important to note that almost 98% of Chapter 7 bankruptcy cases are what’s known as no asset cases, which means that the debtor loses no assets to the trustee acting on behalf of the creditors. This is typically due to the possession have little value or the debtor having an exemption to protect the asset.
If you do own valuable possessions and are worried about losing them, then Chapter 13 is likely the better option. It allows you to keep everything you want but instead of paying the creditor in full, you may a fraction of the value and you pay it over time. You propose the plan, you suggest values, and you can get out of the bankruptcy if it takes an unexpected turn.
A common misconception is that you will not be able to get credit if you file for bankruptcy. Others believe that they cannot get credit for ten years after filing bankruptcy. This is false. In fact, most people who file for bankruptcy are instantly a better credit risk than they were before they filed. Why? Because there are fewer demands on their income.
Many people are embarrassed by their situation. They are afraid they are going to be exposed and that people will judge them for their bankruptcy. While it is true that bankruptcies are public record and anyone could potentially find them, how likely do you think it is that your friends, neighbors, or coworkers are going to check these records to see if you have filed for bankruptcy?
If you are not sure if bankruptcy is the right choice for you then we highly recommend you contact California Bankruptcy Relief at (888) 748-0025. We can provide a free bankruptcy consultation so that you will know what your options are.