In many cases, filing for bankruptcy is the best option for people in debt they too often let fears get in the way of making the right choice. If you are curious about bankruptcy, we urge you to contact The Law Offices of Paul Y. Lee at 951-755-1000 for a free bankruptcy consultation. You can also keep reading to find out three common fears people have about bankruptcy that are quite unfounded.
Fear 1: You Will Lose Control Over Your Finances
False. Many people assume that if they file for Chapter 7 and a trustee gets involved, they will have no control over their money or their assets. This is almost always false. In fact, more than 97% of Chapter 7 cases in California are no-asset cases. What does this mean? It means that most debtors do not lose anything to the trustee on behalf of the creditors.
If a debtor chooses Chapter 13 then they keep the assets they want, continue to pay a fraction of their value to creditors over time, and stays in total control over their finances. Either way, it is unlikely that you are going to have a trustee taking over anything.
Fear 2: Your Credit Will Be Ruined for Years
You will find plenty of commercials and other dishonest ads that attempt to convince you that there are for-profit options that can get you out of debt. They often say that if you file bankruptcy, you can say goodbye to ever getting credit again – or that it will take you ten years to get credit. False.
In fact, your credit score is likely to go up immediately after your bankruptcy is discharged. Why? Because right now you have a lot of debt and that makes you a huge risk. If you have no debt but the same income, you are a “safer” risk to lenders.
Fear 3: You Will Be Publicly Exposed
Many people worry about bankruptcy exposing them publicly. They worry that they will be the subject of public ridicule if they file. This is essentially nothing more than an overactive imagination. Yes, it is true that bankruptcy cases are filed in public court and if someone wants to find it, they can. However, how likely is it that your coworker or neighbor is going to go find out if you have filed bankruptcy? Realistically, the chance that you will be found out to be drowning in debt could be higher.
Call Us to Get the Facts About Bankruptcy
Now is the right time to contact The Law Offices of Paul Y. Lee at 951-755-1000 to get the facts about filing bankruptcy. We are happy to offer a free consultation so that you know what your options are and whether or not this option is right for you.
