Bankruptcy Xml

Although the bankruptcy process can seem intimidating, it is meant to be a tool of assistance to those in financial trouble. The main source of fear for most people who are considering filing for bankruptcy is misinformation. There are many myths that circulate about the bankruptcy process, most of which are completely false. The best way to get over fears about bankruptcy is through education and information.

Myths And Misconceptions

One of the biggest areas of concern among potential filers is what will happen to their assets. Most people assume, or have heard that, they will lose all of their assets in bankruptcy. While some assets may be eligible for liquidation under certain circumstances, it is not the case for everyone. In fact, these situations are more rare than one would think and there are many ways in which asset liquidation can be avoided. Filing for Chapter 13 can ensure there is less risk of asset liquidation as the debtor is making payments through a repayment plan. Also, bankruptcy exemption laws protect much of one's personal property and money from creditors in nearly all bankruptcy cases.

People also worry about their reputation in the community. Filing for bankruptcy is a matter of public record, but it is quite rare that this information is displayed publicly. The information is available through the courts and is not publicized in any fashion. Unless the case is considered high profile, involves fraud or an entity of general concern to the public, it is rare for filing information to get out to media or citizens. Further, bankruptcy laws protect against discriminatory actions based on a filing status. This means that landlords and employers would not be able to discriminate against a filer based on their status in the bankruptcy court.

Another issue of concern regards one's credit after bankruptcy. The truth is that bankruptcy itself does not damage credit, missed payments and delinquent account standing do. Credit damage is done long before anyone ever files for bankruptcy. In fact, filing for bankruptcy can actually improve one's credit when the delinquent account standings are erased and debts are considered satisfied. It isn't uncommon for a filer to see some level of improvement in their credit following a discharge. However, bankruptcy can bring certain credit challenges. Getting new credit after bankruptcy may be more difficult than someone without a bankruptcy notification on their history. While getting new credit can be challenging it is definitely not impossible. There are plenty of creditors who target post-bankruptcy consumers for lines of credit. The challenges usually lie in finding a good interest rate and favorable terms or conditions.

The Lee Law Firms aims to help local residents resolve their debt issues and achieve a financially healthy future. They provide high quality legal representation that helps lower monthly debt payments, stop wage garnishment,prevent foreclosures and repossessions, and stop calls from creditors. The Lee Law Firm bankruptcy lawyer in Fort Worth have many years of experience in all aspects of Chapter 7 and Chapter 13 Bankruptcy.

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