How to Avoid the Bankruptcy Blues

Is the thought of having to file bankruptcy getting you down? Don’t let it! There are benefits to filing bankruptcy that could really help you and/or your family get out of debt quickly, and achieve a financial fresh start. Filing bankruptcy happens for dozens of reasons from filing a Chapter 7 bankruptcy to get rid of recent payday loans to filing a Chapter 13 bankruptcy to halt a foreclosure. Not all the negative news you hear about bankruptcy is true, and I’m here to give you the inside scoop on how to avoid the bankruptcy blues.

1. Don’t believe everything you hear

Sure, bankruptcy gets a bad reputation from time to time, but put simply it is a process that helps thousands of Americans get out of debt and get their finances back on track. You may hear that bankruptcy is a “credit score killer,” but in reality it can help you rebuild your credit score to higher than it has ever been before. Once you file bankruptcy and wipe away unsecured debts like credit cards and medical bills you can rebuild your credit by making timely payments on secured items like your home or vehicle.

2. Do your own research

A sure fire way to avoid getting worried about filing bankruptcy is to go into the process with knowledge. There are hundreds of resources on the internet nowadays that do a great job of explaining bankruptcy in ways that anyone, not just attorneys, can understand. Be sure to look into bankruptcy rules called “exemptions” that are specific to your state and outline the value of certain items that can be protected from liquidation. If you aren’t comfortable researching on the internet try asking friends or family who have filed before or contacting local bankruptcy attorneys for free initial consultations.

3. Remember that your situation is unique

No two bankruptcies are the same, so if you hear negative things about someone else’s bankruptcy remember that your situation is unique and can turn out drastically different. To give yourself some confidence about the process sit down with several bankruptcy attorneys to discuss your specific situation and which Chapter of bankruptcy will help you the most. You will ultimately decide whether or not filing bankruptcy is best for you and/or your family – that’s really all that matters.

Deciding to file bankruptcy is a difficult decision and may not feel like your proudest moment, but if you are facing an overwhelming amount of debt that you cannot see yourself paying off in 1-2 years then it may be a decision you need to consider making. Remember that you aren’t alone and thousands of people file bankruptcy each year to gain a fresh start financially. Don’t let the bankruptcy blues get you down; go ahead and find the best bankruptcy attorney for you, get your paperwork filed with the court, and before you know it your case will be over and you will be debt free!

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