Is Filing Bankruptcy The End of the World?
It used to be that considering bankruptcy was only necessary if life through you a bad curve. In the current economy, many millions of people are hanging on by the hair of their chinny, chin, chin. Filing bankruptcy is a real possibility
What is bankruptcy? It is a big fat timeout on your financial situation followed up by a resolution, one way or another, on your financial problems. America is the land of second chances and bankruptcy is nothing if not the ultimate second chance.
Much like cliff diving, the hardest part of bankruptcy is taking that first step and filing. You should never do it without first talking to an attorney. That being said, common themes will arise and here are some answers to them.
Is filing bankruptcy going to be the end of your life? No. It is an economic decision. That is all. It is important and there are serious ramifications, but they are not going to put you in jail or take away your birthday.
A second misconception that arises is that the debtor will be unable to ever get credit again or will at least have to wait seven to ten years. This is simply untrue. You will probably be shocked to discover the opposite is actually true.
If you think credit will never be given to you again, you are going to be in for a huge surprise when your bankruptcy case ends. Why? Pre-approved credit offers are going to come rolling in like crazy till it looks like your mailbox is in a snow bank.
Why is this? There is a simple reason. Once your bankruptcy ends, you often are barred from filing again for another seven years. Since most car loans, for instance are only three to five years, why not give you credit? Credit cards will also reap a lot of profit in that time period.
What about my reputation in the neighborhood? Well, what about it? How are your neighbors going to find out? They probably are not unless you say something. Statistically, some of them have already filed bankruptcy in the last five years.
So, is filing bankruptcy something that should be entered into without much thought? No. It is a very serious matter with major ramifications. The thing to take away from this article, however, is that it is not the end of the world.
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