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Misconceptions often abound concerning bankruptcy filings

On Behalf of | Apr 8, 2021 | Bankruptcy

Following is a candid question that might logically be asked these days of many individuals and couples residing in central Florida locales.

To wit: Are you struggling financially and worried about your future ability to make ends meet?

If so, you’re far from alone. Times are presently tough for legions of folks, and for many reasons.

The result of such economic dislocation is that increasingly high numbers of people are searching for answers to stark financial woes.

Although every one of those individuals has a unique story to tell, of course, there is some commonality when it comes to persons seeking a solution to problems that can sometimes seem overwhelming.

That is this: The demographic comprising individuals searching for answers is both inclusive and broad-based. You might be a business owner or holder of a professional occupational license. Perhaps you are a new parent trying to stay on top of accumulating costs and expenses. Maybe you’re freshly divorced, just out of school, recently laid off owing to COVID-19 constraints, dealing with a lender that has turned to hard-ball tactics – persons with notable money challenges are of every conceivable type.

Why some people pull back when considering a bankruptcy filing

An immediate point to note concerning bankruptcy is this: It is a time-honored and repeatedly proven legal process for resolving debt woes and enabling strapped individuals and families to secure a fresh financial start. In fact, its recognition as a solid option for dealing with high debt levels traces back hundreds of years to the U.S. Constitution, where it is explicitly underscored.

Notwithstanding its long pedigree as an effective legal tool for erasing high-level financial concerns, though, many would-be filers balk when considering it. They harbor a number of perceptions that owe more to myth than to reality. Here are some ungrounded fears cited by prospective filers who hesitate to invoke bankruptcy’s many protections:

  • Filing and related costs are prohibitively high
  • Process is overly complex and time-consuming
  • All assets will be lost
  • Creditors will continue to harass
  • Financial reputation (especially credit score) will be permanently marred

Myths exposed: Many bankruptcy fears are flatly unfounded

All those above-bulleted concerns are understandable, but none of them hold water. A proven and empathetic bankruptcy attorney can routinely ensure for every valued and diverse client that costs will be closely addressed and contained. The bottom line with all expended bankruptcy expenses is that they are often far below what many filers fear.

Moreover, the process is quicker and more streamlined than many people think. And experienced legal counsel will make sure that a client is empowered with knowledge and close instructions at every material point.

As for those creditors, they are held at bay from the moment of filing, being lawfully precluded from collection attempts and aggressive or harassing contacts. And many of the personal assets that a filer fears will be lost in bankruptcy often turn out be safeguarded and permanently retained.

The truth about a bankruptcy filing – the anti-myth, if you will – is that it routinely enables filers to reestablish a solid credit history and regain financial traction in their personal and professional lives.