Sometimes we're our own worst enemy.
Case in point: While many Tennessee consumers are in a position to find financial relief through bankruptcy, most are too afraid to file because of unfounded fears.
According to Bankrate.com, many Americans believe filing for bankruptcy will mean losing all their assets, becoming ineligible for a credit card, and dealing with numerous other difficulties.
The article goes on to point out that most of our concerns are, in fact, untrue.
In reality, a Tennessee bankruptcy may be the most effective way for people to manage debt when other options, such as reducing expenses or negotiating a loan modification, just aren't a possibility. While bankruptcy may not be right for every situation, it can be a godsend for those who qualify.
Tennessee bankruptcy attorneys have worked with many clients who avoided filing until there was no other solution, leaving them with a rock-bottom credit score and foreclosed home. The sooner you file for bankruptcy, the sooner you can protect your house from the bank, begin repairing credit, and get back in control of your bills.
We often forget that bankruptcy was created for one reason: to help consumers. Here are Bankrate.com's top bankruptcy myths - and why they're simply not true.
Your credit will be forever tarnished
It's true that bankruptcy will remain on your credit report for up to 10 years. This concept frightens people. But considering most consumers who file have been missing payments and routinely approaching or exceeding their credit limit for years, bankruptcy probably isn't going to make that much of a difference. What bankruptcy can do, however, is allow you to make the necessary changes to start improving your credit. In fact, many bankruptcy clients receive credit card offers shortly after filing.
You'll lose your stuff
While Chapter 13 bankruptcy protects assets, Chapter 7 bankruptcy allows some items to be liquidated. This leads many people to assume they will automatically lose their personal possessions by filing for Chapter 7. In most cases, homes, cars, retirement funds, and many other items are protected by a list of exemptions determined by each state. In addition, any item that you continue making payments on will remain yours to keep.
Your filing will become public knowledge
Maybe one of the biggest deterrents for most potential bankruptcy filers is pride. They worry that somehow neighbors, co-workers, and acquaintances will find out and view them as a financial failure. While bankruptcy is a public legal proceeding, it's not like your name will be read out on the steps of the courthouse. Unless you're a famous celebrity, no one is going to find out you filed for bankruptcy. In fact, by nipping your financial problems in the bud before they cause long-lasting damage - such as the loss of your home to foreclosure - you're in a better position to privately solve your problems and move on before anyone notices.
Bankruptcy is simpler and more effective than most Americans realize. Ultimately it's your choice whether to file. By educating yourself about Tennessee bankruptcy, you'll have the information needed to make the right decision.
More Blog Entries:
12 Myths About Bankruptcy, Bankrate.com