Reasons Why Bankruptcy is Not as Scary as You Think

Bankruptcy gets a very bad rap, but its negative connotations are often a result of comments and intimations made by people who don’t really understand the process or its outcomes. If you are struggling to pay your own bills but are afraid of bankruptcy because of all the bad things you’ve heard about it, we want you to know that bankruptcy is not as scary as you think it is and can make a significant improvement in the quality of your life. Let’s look at the two things that people find most intimidating about filing for bankruptcy, and the realities of doing so.

  • You may be afraid that filing for bankruptcy will mean that you’ll never be able to purchase anything on credit again or to rebuild your credit rating.
  • You may be afraid that your community will think less of you when they learn that you’ve filed for bankruptcy.

Before we look into the truth (or fiction) of each of these common beliefs, let’s look at the reality of your current situation. If you are sinking into debt, then the idea of buying more things on credit should scare you — it will only make a bad situation worse. And as for your community, the longer you put off doing something about your financial situation, the more likely it becomes that they are going to see your belongings being carted out of your home or your car being repossessed. Taking action is the best way to put a stop to your slow slide.

In reality, filing for bankruptcy does not preclude you from getting credit. What is true is that you will likely have to pay a higher rate — at least initially — but as you manage your finances better without the weight of out-of-control debt, you will slowly be able to rebuild your credit, and your bankruptcy filing will be wiped from your records after 10 years. With reference to word getting out about a bankruptcy filing, that is unlikely to happen unless you make the decision to share the information with others.

The truth is that filing for bankruptcy offers you a clear path to wiping the slate clean and getting a fresh start. For more information on how the process would work for you, contact our office today to set up a time to meet and discuss your situation.