The decision to file for bankruptcy can be heartbreaking and stressful. It is particularly so for people who have been given misinformation about the process and the consequences or who believe some of the common myths about bankruptcy.
In the Atlanta area, one of your best friends during difficult and trying financial circumstances is an experienced and sympathetic Atlanta bankruptcy attorney. At Legal Atlanta, you get the best services and advice with regard to repayment of all long standing debts. A good Conyers GA bankruptcy lawyer helps you see the light at the end of the tunnel.
One of the most alarming myths states that when you file for bankruptcy you will lose everything: your house, your car, your investments, even your retirement accounts. This is simply not true. The goal of bankruptcy laws is to reorganize a person’s finances or the finances of a business so that they can become solvent once more.
In the eyes of the law it is not a good thing to strip a person of their property and possessions if there is nothing to be gained from that process. Furthermore, retirement accounts are exempt from all claims of unsecured creditors.
Another important asset you will be able to retain is your home, along with your primary vehicle.. Even in cases where they are used as collateral they will normally only be repossessed if there is any accumulated equity in them. This is usually not the case in bankruptcy situations.
Many people also worry about their reputations, fearful that filing for bankruptcy will alienate friends, family and business clients. This, too, is a myth. While bankruptcy was considered in a bad light during the early part of the last century, today it is an acceptable process to solvency. It is also a private procedure that no one need know about if you don’t tell them.
With respect to you credit rating, it is true that the bankruptcy will be added to your credit report but it actually makes you a better risk for potential creditors. Credit card issuers know that you will not be permitted to file again for a certain number of years.
People also mistakenly believe that when they file they will be hounded by their creditors and harassed even more than previously. In fact, just the opposite is true! Bankruptcy laws state that once you have filed, any creditor who attempts to collect a debt that you have included in the filing is breaking the law and is subject to criminal penalties. Bankruptcy stops all collection efforts, including telephone and mail conact.
Perhaps the most prevalent myth is that filing bankruptcy means you are a poor manager of money or you are a personal failure. If this was ever true, in today’s complex financial world it certainly is not. In most cases, it isn’t even financial irresponsibility that causes a person to file but a chain of circumstances beyond their control. Filing bankruptcy takes courage and resolve and is a clear signal that you intend to work towards a new financial future.