There is little doubt just about everyone has been impacted in one way or another by the economic downturn. Are we in a recession or not? Who can really say? What is clear is some people have been pushed to the financial edge and bankruptcy is a concern.
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.
Many people treat the bankruptcy decision as though it is a question of life and death. It is not. It is a very important economic decision that can have major results, but it is not the end of the world. Millions file each year which says a lot.
If I file bankruptcy, I will never be able to get credit, a mortgage, a car loan or any other loan again, right? Wrong. This assumption, as with many assumptions, is not only wrong, it is completely wrong in ways you cannot even imagine.
Once your bankruptcy is over, an odd thing will start happening. Your mail box will start filling up with credit offers. You will be pre-approved for car loans. Credit card offers will be so plentiful that your mailman will get a backache from lugging them around.
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.
About the Author:
William Gibson is with BankruptcyAttorneysandLawyers.com, where you can find bankruptcy attorneys across the nation.
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