Are you curious about filing for bankruptcy but are not sure if it’s the best thing for you and your family? You are not alone. Navigating the world of bankruptcy can be difficult and many people have some of the same fears, including:
I’ll Never Qualify for a Line of Credit Again
It can be common to think that after filing for bankruptcy you’ll never be able to qualify for a mortgage, car loan, credit card, etc. In fact, there are certain creditors who will WANT to extend you a line of credit. They know that you won’t be able to file bankruptcy again for a number of years, so their chances of losing money on you is very slim.
I’ll Lose My Property
Most people will not have to give up their personal and/or real property. Each state has its own exemptions or uses those in federal bankruptcy laws, to help filers keep their property.
It’ll Affect My Spouse
If one spouse files bankruptcy without the other, only the filing spouse’s individually held debts are eligible for discharge or a payment plan. If one spouse files bankruptcy without the other, the non-filing spouse will still owe on any jointly held debts.
My Family/Friends/Employer Will Find Out
This is the big fear for a lot of people. There has been a persistent social assumption that filing for bankruptcy means you’ve mismanaged your finances and should therefore be looked down upon. However, bankruptcy is more common than most people realize, one in ten adults will file at some point in their life. Also, while bankruptcy cases are public records, most everyday cases aren’t newsworthy and therefore aren’t public knowledge. Someone would have to go on a deep dive to intentionally find out about your bankruptcy.
I Won’t Be Able To Get A Job
Employers are not allowed to discriminate against you because you have filed for bankruptcy. However, depending on the job you apply for, it can certainly influence their hiring practices. The most crucial advice is to be honest with potential employers. People often file for bankruptcy because a major life event has disrupted their finances, and that is very relatable. Ensure the potential employer that it does not reflect your work ethic or ability to perform work-related responsibilities.
I Can’t Afford Lawyer
Courts often limit the fees an attorney can charge, and most state statutes will set the filing costs. An experienced attorney will let you know what these cots are and work with you to determine if bankruptcy makes sense to you.
Hiring a lawyer to assist you is one of the most important steps in successfully filing bankruptcy and avoiding legal consequences. If you are thinking of filing for bankruptcy, call Kamper Estrada, LLP for a free initial consultation with one of our experienced Bankruptcy Lawyers Phoenix, AZ residents recommend.