Depending on the information you’ve come across on different platforms, you might have read or heard about the sound, wrong, exaggerated, or a blend of all matters about bankruptcy.
Being unable to afford food, rent, gas, among other basic and luxurious goods and services; coupled up with the inability to service debts is the worst of experiences any of us can ever encounter.
Additionally, the constant harassment from debt collectors, creditors, guarantors, suppliers, among other financial associates, can make one feel as if he or she has hit a dead end.
Ultimately, declaring bankruptcy is the last solution. Leaving one not only guilty of the unsettled financial burdens but also with fears of a flickering future that might be gloomy forever. Nevertheless, outlined below are some critical facts about bankruptcy.
Bankruptcy is the Best Solution to Reorganizing One’s Financial Situation
Working towards solvency is a journey that needs a sober mind. However, with so many calls from different creditors threatening to take every bit of the little cash flow that you have, it can be difficult to settle and re-establish your financial muscles.
According to philadelphia bankruptcy lawyers, insolvency laws are one of the few legislations left to protect the people. They up to a certain level shield citizens from garnishments, stop collection calls and emails from overflooding their devices, among other related bills.
Once these constant threats to one’s situation are stopped, he or she can comfortably take a step back. Objectively making plans on how to rebound to previous financial strengths.
Bankruptcy Will Not Ruin Your Credit Forever
One of the myths intensively peddled around is that bankruptcy ruins one’s credit forever. Contrary to this misconception, your financial future is not by any chance predestined regardless of the type of insolvency you file. Once you regain stability, you can begin repairing your credit.
For instance, if your business suffered from a bankruptcy, the business partners whom you still have a good rapport with can continue supplying you with goods and services.
Depending on your subsequent interactions with such among other vendors you will approach, your credit score will begin to rise if different credit bureaus get wind of your rekindling financial strengths.
You Will Not Lose All Your Property Upon Filing for Bankruptcy
Depending on your financial situation, you can either file for Chapter 7 or Chapter 13 bankruptcy.
In the former, some of your assets get liquidated to pay off debts. Nevertheless, some property such as a home, car, household property, among other possessions, might be exempted by your State Laws from liquidation.
On the other hand, Chapter 13 bankruptcy allows you to retain your property with the promise to clear your debts over a given specified period. Usually, between three to five years.
Your Professional and Personal Reputation Can’t be Damaged Because of Bankruptcy
Finally, when faced with insolvency, only a few of your friends, relatives, creditors, and your attorney will be the ones aware of your situation.
Additionally, undergoing credit checks to secure some job position will not under most circumstances, discriminate against you to the point of getting denied the opportunity to serve different responsibilities.