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Filing for bankruptcy can feel like a scary process if you are not sure what to expect. This may cause some people to neglect to see all the good things that bankruptcy can do and the many good reasons to file for bankruptcy with the help of a qualified and experienced Memphis bankruptcy attorney. Here are some of the most common things that people hear about bankruptcy that simply are not true. You Will Lose Everything One of the most unfortunate things that people hear that prevents them from filing for bankruptcy is they will lose everything they own when they file. However, just the contrary is true. The bankruptcy trustee wants you to keep as much of your property as possible, and if there is a way to save your items from being repossessed or sold to pay off your debts, they will attempt that avenue first. In fact, when you are facing great loss, such as through a foreclosure of your home or a repossession of your vehicle, bankruptcy may be just the solution to save you. By filing for Chapter 13 bankruptcy when your home is entering foreclosure, a bankruptcy can put the past due payments in your mortgage into your reorganized payment plan. Doing this may allow you to continue making payments on your home going forward while making up the late payments. Often a viable antidote to vehicle repossession, Chapter 7 bankruptcy stays any collection efforts from any of your creditors, including the lender on your auto loan, for 30 days. Collection efforts include efforts to repossess and so Chapter 7 bankruptcy may give you the opportunity to get caught up on your auto loan and make the payments in the future. Everyone Will Know One thing that scares some people out of filing for bankruptcy is the worry that everyone will know. Your bankruptcy will not be announced to anyone unless you announce it. Although bankruptcy filings are a matter of public record, the only time that anybody ever hears about them is when celebrities or political figures file. Bankruptcy is heavy tabloid fodder, so unless you are a high ranking official in your community or a celebrity, news of your bankruptcy will likely be restricted to you and whoever else you think should know. You Have Failed Financially Some people unfortunately see bankruptcy as the ultimate failure in terms of finances. However, when you take the time to approach it the right way, and speak with a lawyer about your options before filing, bankruptcy might just be the best option in your particular case. Besides, most of the most common reasons that people file for bankruptcy in the first place are things that are out of their control. Some of these common reasons include job loss, divorce, death of a spouse, or extensive medical expenses. These are obviously not situations that you will always have control over, and bankruptcy in these cases might offer you the opportunity to turn over a new leaf. You Can File on Your Own While it is true that there are resources available to help you file for bankruptcy on your own, you will have the most successful experience when you choose to work with a qualified bankruptcy lawyer. There are many reasons that this is true. First, there is a lot of paperwork to go through when you file bankruptcy, and an attorney is simply the best person to help you make sure that everything is completed in time and correctly. Second, you will save yourself a lot of time and effort by putting the information in your lawyer’s hands and letting them make sure all the details are accurate. Finally, working with a Memphis bankruptcy attorney to file bankruptcy will help you ensure you are making the best decision for your financial situation.
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