Chicago Tribune Clears Up Myths About Bankruptcy
Sometimes to move forward, you've got to let go. And for many folks hoping to conquer debt in 2011, that means letting go of long-held - but often unfounded - fears about bankruptcy.
While bankruptcy filings are increasing each year, many of us are still holding back, according to a recent article in the Chicago Tribune. We worry about what our friends and families will think, about whether we'll have to give up our assets and about how we will cope with the fact that bankruptcy could stay on our credit report for the next decade. But by avoiding one of the most effective ways to lower debt, we may actually be making our financial situation worse.
Contrary to popular belief, having a record of bankruptcy does not have a major impact on your credit, says the Chicago Tribune. In fact, many responsible bankruptcy filers - in other words, those who use bankruptcy to get back on their feet, not just buy time - report getting home loans, car loans, and credit card offers shortly after filing. If anything is going to negatively affect your credit, it's your growing debt and the fees, garnishments, evictions, foreclosures and other problems that come with it.
As for the fear that your stuff will be taken away, repossession is less common than most people realize. A reputable bankruptcy lawyer can usually protect your assets during the bankruptcy process. That said, the deeper you fall into debt, the more likely it is that you will have to give up some goods. For instance, a Chapter 13 bankruptcy case can prevent foreclosure even after the process has started - but it's less likely to work a day or two before the bank takes your house.
If your debt is unmanageable, the sooner you talk to a professional bankruptcy lawyer, the better. Still have some unanswered questions about bankruptcy? A trustworthy bankruptcy firm should always answer them for free. At DebtStoppers, our Chicago bankruptcy attorneys are ready to discuss your financial situation and determine if a bankruptcy plan is right for you during a free one-on-one debt analysis. Why spend the first month of the new year ringing up more debt, when you can spend it freeing your finances for good?