Don’t Let Fear of the Unknown Keep You In Debt, Say Illinois Bankruptcy Lawyers

Sometimes there's nothing scarier than the unknown. When you're a kid, it's the monster you swear is hiding under your bed at night. When you're an adult, the fears that keep you up at night are a little more based in reality - like bankruptcy.

With so many Americans in debt and facing foreclosure, you'd think Chapter 13 would be a no-brainer. It's the only surefire way to prevent foreclosure and often times the most effective way to get out of debt. Yet some folks will give up their house before they file for bankruptcy because they've been led to believe it will wreck their credit or land them in court - neither of which is true, by the way.

Fortunately, there's an easy way to get over your fear, and it's the same trick that worked when you were five years old. What is it? Knowledge. Remember what happened when your mom came into your room and turned on the light? Your "monsters" turned out to be piles of toys and clothes casting shadows on the wall. Once you knew what was really making those scary looking shapes, there was nothing left to be afraid of. You could sleep soundly knowing you were safe.

If you listen to all of the myths about bankruptcy, you're going to create a monster in your head. But start replacing those fears with reality and you'll free up your opportunities for a debt-free future.

Here's an example. There's a lot of talk about bankruptcy courts, enough to lead folks to believe they'll have to face a judge when they file - not exactly a great incentive. The truth is, most people who file will never see a judge. You will have to attend a Meeting of Creditors, which sounds like a serious courtroom activity - but is really just an informal meeting - often in an office rather than a court - between you, your attorney, a bankruptcy trustee and your creditors. It gets better, though - most of the time, creditors won't show because they know they no longer have power over your debts.

Then there's the old credit argument - if you file for bankruptcy, it will stay on your credit report for seven years. There is some truth to this because bankruptcy will be reported to the credit bureaus. However, consider this. First, if you're drowning in unpaid debt, do you really have any credit left to save? Second, having a bankruptcy filing on your report isn't the end of the world - most DebtStoppers clients get offers for car loans, credit cards and mortgages right after filing. Is missing bills, adding to your debt and losing your home the price you're willing to pay to stay bankruptcy-free? Or would you rather face your bankruptcy fears and be rewarded with enough to pay the bills, debt elimination and foreclosure protection - in other words, financial freedom?

I realize it's tough to face your fears. But take comfort in the fact that you don't have to face them alone. At DebtStoppers, we can help determine whether a bankruptcy plan is right for you. Just sign up for our free personal debt analysis. And if you have any questions along the way, just let us know. We'll keep you in the know - free of charge.

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