No one likes to talk about bankruptcy. We all know that it’s there, that it’s scary, and that we hope that it never has to happen to us. But things happen, and bankruptcy law is created to protect you. And filing for bankruptcy doesn’t have to be scary — it can actually be one of the most liberating financial decisions you make. In today’s blog post, we’re going to talk about some of the unspoken fears about bankruptcy, and how they aren’t actually as large and scary as you might imagine.
Continue reading to learn more, and if you’d like to set up an appointment with a McCue Law Office bankruptcy attorney, contact our Bangor-based law firm today. We also have resources about the various types of bankruptcy on our bankruptcy overview page and you can find answers to bankruptcy FAQs here.
Fear of Losing Control
One of the biggest causes of fear is a lack of control, and when it comes to filing for bankruptcy, that potential lack of control can be terrifying. Depending on the type of bankruptcy you file, you will need to forfeit some, or all, of your assets. But know that most personal bankruptcy cases the individual debtor is not required to turn over any property to the bankruptcy trustee. In fact, for most filers, their personal property and equity in real estate will be exempt. If you have questions about how this may apply to your own situation, contact one of our Bangor bankruptcy attorneys.
Fear of Losing Credit
Many people believe that if they file for bankruptcy, they will never be able to qualify for a mortgage or other type of loan, like a car loan or credit card. While your credit will take a big hit, that doesn’t mean you won’t ever be able to buy a house again! In fact, you can build your credit relatively quickly after filing for bankruptcy. Plenty of lenders will take a chance on people with bankruptcy on their credit record, and there is no law that prevents creditors from extending lines of credit to you. You will most likely have to accept much higher interest rates, but you can find secured and unsecured credit cards for recent debtors. You’ll pay more for your credit immediately after a bankruptcy, but if you make regular payments and keep a clean record afterwards, your credit score will rise.
Fear of Others Finding Out
What the people we love think of us is a big motivator in our lives, and the fear of others thinking less of you because you filed for bankruptcy can be paralyzing. Many people would rather deal with the stress of bill collectors than have someone they know find out that they filed for bankruptcy. Know that if you don’t want to share your financial status with others, you don’t have to. Bankruptcy cases are public court records, but the likelihood that your acquaintances will find out are very low, unless you choose to tell them.
Know that if you do choose to file for bankruptcy, you’re not alone. About one in ten adults will file for bankruptcy at some point over the course of their lives. So next time you’re in a meeting at work or at a family reunion, think about how ten percent of the people there have been in a financial situation similar to yours. While bankruptcy, and our finances in general, isn’t something we talk about often, it doesn’t mean that you’re the only one struggling.
Bankruptcy Is A Tool – Not Something To Be Afraid of
Our bankruptcy attorneys will help you understand that bankruptcy is a tool, not a big bad wolf to be afraid of. While it does have consequences, it’s simply an option you have to use, and those who choose to file are often very grateful that it exists. Instead of being afraid, try thinking of bankruptcy as simply a potential solution to financial problems.
Once you get over the hurdle of your fear, filing for bankruptcy can actually be a very smooth and simple process. Our bankruptcy attorneys are here for you every step of the way and can help you understand which bankruptcy option is right for you, whether it is Chapter 7, 13, or another option. If you’d like to learn more about filing for bankruptcy, visit our bankruptcy overview page or our bankruptcy FAQs page.
McCue Law Office Bankruptcy Attorneys
McCue Law Office in Bangor is committed to helping our Maine clients find relief from overwhelming debt. If you need a fresh start, contact one of our bankruptcy attorneys today. We have more than 35 years of experience serving clients in the state of Maine. Along with bankruptcy, our law firm also specializes in personal injury, social security disability, workers’ compensation, and real estate. Contact us today for a free consultation.