There is often a lot of emotion attached to how and when we spend money. For instance, we spend when we are happy, we indulge in retail therapy when we are bored or sad, and we may even feel depressed when we cannot pay the bills. While mismanagement of money is sometimes the reason for our financial downfall, more often it is due to an unexpected life event like a major illness, car accident, loss of job, or even divorce.
If your bills exceed your income, you have little in savings, and virtually no way to pay your creditors, bankruptcy is most likely your best option. With the help of a skilled bankruptcy firm like Levitt & Slafkes, P.C., you can explore your options regarding whether Chapter 7 or Chapter 13 is better for you. Like many though, you may have anxiety about moving forward.
The following are three of the most common fears we have about filing bankruptcy:
· You are worried that you will not be able to make large purchases in the future – Damage to your credit may be weighing heavily on your mind as you consider filing for bankruptcy. You may be concerned that you will never be able to buy another home, or even a nice car. That’s not true, although it might be a while before you are able to do so. If you do decide to purchase a home, you may be able to look forward to getting a new mortgage within just a couple of years. This of course assumes that your finances and payment history are in good shape after bankruptcy, which shows a lender that you are a good risk despite bankruptcy and perhaps even a foreclosure. It is likely that you can purchase a vehicle shortly after your bankruptcy is over. However, the interest rate might be on the higher side.
· You are worried about losing your current home, car, and other property – Contrary to what many believe prior to filing, you should be able to keep your home and your car in bankruptcy, whether filing for Chapter 7 or Chapter 13. There could be complications if you are behind on your mortgage or car payment, or in the middle of foreclosure proceedings or repossession. While the automatic stay (an injunction that goes into effect as soon you file) will stop all collection activities for the duration of the bankruptcy, a mortgage or car lender can petition to have it removed if you are behind on payments. Keep in mind that in Chapter 13, delinquent payments can usually be included which will enable you to keep your home and car as long as you can stay current on the payments. See more about keeping your property in bankruptcy here.
· Social stigma – Although hundreds of thousands of individuals file for bankruptcy in the US each year, and probably some of them are your friends and family, you may still be very concerned about what others will think if they find out you filed for bankruptcy. The key is to remember that bankruptcy can be an excellent financial tool, and in using it, you are making the effort to correct your situation and look forward to success in the future. And while bankruptcy filings are public record, keep in mind that few will be paying attention to such notices and will likely only find out you filed if you tell them.
The experienced attorneys at Levitt & Slafkes, P.C. can answer all your questions regarding bankruptcy issues. Contact us today so one of our attorneys can evaluate your case and discuss the best options available to you. We are here to help! Call us at 973-323-2953, or contact us online to schedule a free consultation.
We are proudly designated as a debt relief agency by an act of Congress.