Some prospective clients worry that a bankruptcy will present more problems than the inability to pay bills. Below, I have listed some typical concerns and attempted to dispel them:
1. Filing bankruptcy is embarrassing and people will gossip.
I can sympathize with this worry because it is always hard to admit when we need help. When you file bankruptcy, you are asking the federal government to help you take control of your finances; and this can be difficult for some people. When clients tell me they are concerned about what other people will think, I remind them that everyone struggles financially at some point. When bad things happen, like the loss of a job or an illness, it is not easy to recover. Although bankruptcy is public record, it is more than likely that your friends and neighbors will not find out about your filing unless you tell them. You must also remember that you are your own worst critic. If you are considering bankruptcy it is likely that you can empathize with others who are struggling to pay bills. I also suspect that you do not judge others as harshly as you judge yourself: I doubt you would ridicule another person facing the same issues you are facing. When you hit tough times, it is important to remember to be as kind to yourself as you are to other people.
2. My home will be foreclosed and my family will not have a place to live.
If your home is set for foreclosure but has not yet foreclosed, there are options to help you stay in the house or get out from under a mortgage that has become too expensive. We will talk about these options during your appointment.
3. I won’t be able to pay my bills after I file bankruptcy.
Many people worry that they won’t be able to turn their finances around even with the help of a bankruptcy. We will evaluate this possibility during your appointment. Sometimes bankruptcy is not your best option. Sometimes we will need a more creative solution to help you keep your property and get rid of other debts. Most often, when a client suspects that a bankruptcy will help them get back on track, they are right! We will discuss different options and scenarios during your appointment.
4. Collectors will continue to harass me even after I file.
Typically, creditors are not allowed to contact you to try and collect on a pre-bankruptcy debt. Creditors are required by law to stop contacting you and contact your attorney.
5. Bankruptcy judges and their staff will lecture me or try and embarrass me.
Bankruptcy Judges and their staff are not judgmental. They understand that people fall on hard times and they treat those who have filed for bankruptcy with the utmost respect.
6. I won’t understand the process.
Typically, a new client attends 3 appointments before filing. Each appointment lasts approximately 1 hour and each is designed to address your questions and concerns. We take great care in making sure that all of your concerns and questions are addressed to your satisfaction. As always, if you have other questions you can set additional appointments or contact us by phone or email.
7. After I file bankruptcy, I might fall behind on my bills all over again.
When you are struggling financially every additional financial obligation (like an unexpected root canal) is a burden. Usually we can help you get back on track even though you are already in a bankruptcy. There are ways to modify your bankruptcy plan to address temporary shortfalls in income.
8. Creditors will treat me poorly.
Most of the time, your creditors will be large companies. Large companies typically have bankruptcy departments and these people are used to seeing bankruptcies all day. To them, bankruptcy is just a minor financial event.
9. I will never be able to rebuild my credit if I file bankruptcy.
This is simply not true. It is true that rebuilding your credit could take a few years. It has been our experience that our clients are able to reestablish their credit rather quickly once they have completed the bankruptcy process.
If you would like to discuss your circumstances with our office, please do not hesitate to call us at: 214-696-9601 or email us at: email@example.com