7 Things About Bankruptcy Your Creditors Don’t Want You to Know About
The credit industry aims to restrict debtors from filing for bankruptcy. Creditors can be aggressive and often try to discourage and frighten hard working people in order to collect on debts. You want to make sure that you understand the truth about filing bankruptcy.
Following are 7 things about bankruptcy your creditors don’t want you to know about:
1. Bankruptcy is the most effective way to eliminate overwhelming debt
This is one of the biggest things creditors keep as a secret. They spend a lot of money and do a lot of work to promote anti-bankruptcy PR campaigns in order to make sure that the word “bankruptcy” remains clouded in false information. They do this because they don’t want you out of debt so they put a lot of effort into suggesting credit consolidation. Also because charging late fees and obtaining huge interest is big business and big money.
2. Bankruptcy laws are not as restricting as you might think
While in the past bankruptcy laws were a little restrictive, it’s not the case nowadays. It’s true that recent laws have relatively more paperwork and steps for bankruptcy filings, but this burden will be mostly on your bankruptcy attorney and not you.
3. Most people who file for bankruptcy do not always lose their properties
Creditors want you to think that if you file for bankruptcy, you will lose all your personal belongings, your car, and your house. However, the truth is that most of the petitioners keep all their properties.
4. Bankruptcy pauses repossessions and foreclosures, stops collections and garnishments, and prevents property repossessions via creditor judgments
Creditors usually tell debtors that they will take all their property away from them by getting a court order. It’s a lie because if you file bankruptcy, it will stop creditor judgments, stop collections, and prevent further collections. According to bankruptcy laws, you can keep most (if not all) of your property.
5. You won’t go to jail
Creditors would like you to be frightened, so they sometimes lie and tell you that you will go to jail if you don’t pay your debts. It’s not entirely true as the only people who go to jail are the ones that fail to pay debts for back child support, back taxes, etc.
6. You can rebuild your credit
Another secret most creditors don’t want to you to know about is that you will be able to work on repairing your credit score once your debt is discharged. In fact, many individuals get approved for a loan or a secured credit card within a year after filing bankruptcy. You might even be able to avoid high-interest rates.
7. Most people who file bankruptcy are good people who have experienced difficult times
Creditors want you to think that only deadbeats file for bankruptcy. It is not true as most of the petitioners get into financial trouble due to a job loss, unforeseen medical expenses or divorce.
The Travis Law Firm provides professional legal representation for Chapter 7 & Chapter 13 bankruptcy services for residents of all cities in Riverside and San Bernardino Counties. We have offices in Riverside, San Bernardino, Victorville, Temecula, Cathedral City and Ontario for the convenience of our Inland Empire, High Desert, and Coachella Valley clients. For more information about our bankruptcy law services and other legal representation, call us today at 1-800-BANKRUPT or (951) 274-9501.