Are you concerned that filing for bankruptcy is shameful? If so, you are not alone. Many debtors are worried they will be looked upon negatively if it becomes known they filed for bankruptcy. The alternative is that you continue to struggle with debts in a situation that becomes increasingly untenable.
There is no shame in filing for bankruptcy when it is the most suitable option for managing debt. In fact, the process often is unknown to the general public, and you don’t even have to tell your family and friends unless you choose to do so. Your creditors and the bankruptcy court and staff will know you have filed for bankruptcy. If you have a payroll deduction for payments in a repayment plan, then your employer is notified as well. Keep in mind documents filed in the bankruptcy court are a matter of public record, but the average person you meet will have no reason to know of your bankruptcy filing.
Debt-Free & Dignified
The purpose of bankruptcy is to provide debtors with relief from financial strain. If you are heavily in debt, the chances of your family and even your employer finding out are highly probable. You may find yourself in a position where you are asking friends and family for loans in order to pay off debt. If you are unable to pay creditors, they may pursue wage garnishments which would alert your employer to your debt problems.
Debt collectors and creditors may also call your home and send threatening letters. Unless you are prepared to guard your phone 24/7 and excuse away those easily identifiable letters, your loved ones are more than likely going to find out that you are in debt. Filing for bankruptcy is a positive action that addresses debt problems when you do not have the financial means to meet repayment obligations.
Keeping Your Property
You may be able to keep valuable property, such as vehicles and your home, when you file for bankruptcy. In a Chapter 7 bankruptcy you may be able to keep your assets, but this may depend on if any equity in those assets is exempt and whether you are up-to-date with payments. For a better option for retaining ownership of your assets, a Chapter 13 bankruptcy allows you to propose a repayment plan with payments over 3-5 years.
The type of bankruptcy that will best suit you will depend on your unique financial circumstances. An experienced bankruptcy lawyer can assess your finances and provide guidance regarding which option is most viable. There are numerous potential benefits from filing for bankruptcy. It is important to seek advice from a bankruptcy lawyer if your car and home are under threat of repossession and foreclosure. It will prove difficult to regain financial stability and your dignity if you do not have transportation or a roof over your head.
For more information on the benefits of bankruptcy, get in contact with the offices of H. Lehman Franklin, P.C., in Georgia, today. We are passionate about providing expert representation to clients in our communities. You can reach our team at 912-764-9616 or email us at firstname.lastname@example.org.