For a lot of Americans, debt is a huge concern. Many people have more debt than they can realistically pay off. If this the case for you, then you may want to consider bankruptcy. Here are three facts about bankruptcy.
Courthouse Meetings Happen Twice
One concern that many clients have about the process regards whether they have to show up for court. If you are like most, the idea of being in a courtroom might make you anxious. Fortunately, bankruptcy does not involve a lengthy process in front of a judge. The first time you visit the courthouse is to file your forms with the bankruptcy court. If you have an attorney, then odds are he or she will do this for you anyway so that you may not have to show up at all.
The next time that you must go to the courthouse is for your 341 meeting. This is the meeting of the creditors. This is a quick meeting where your trustee interviews you to make sure that you are being honest on your forms.
Credit Scores Will Improve
One of the biggest fears that keeps clients from making the jump to bankruptcy is the fear that their credit score will be ruined forever. They fear they may not be able to finance a house or car in the future. They may worry about what happens if they ever need a line of credit. The truth is that your credit score is not impacted forever. You will have an opportunity to build your credit back up again. You may have higher interest rates for seven to 10 years, but this will eventually go down and you can rebuild your finances.
Bankruptcy Can Be Better Than Debt Repayment
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Sometimes bankruptcy is the best option. That is not to say that it is not a serious consideration. If you file for bankruptcy, you need to be positive that this is the route for you. However, if you are in serious debt, you could ruin your financial future if you don’t find some way to relieve it. You need to be able to pay off your debts within five years or you are saddled with too much debt.
If you are considering filing for bankruptcy, it is a serious and important financial decision. To find out more about the process, it is important to speak with a lawyer about how bankruptcy can help you. Set up a consultation with a bankruptcy lawyer in Clearwater, FL to find out more.
Thanks to The Law Office of Michael A. Ziegler, P.L. for their insight into the facts about bankruptcy law.
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