Avoiding Legal Trouble

3 Good Reasons Not To Be Afraid Of Filing A Chapter 7 Bankruptcy

Is bankruptcy really something to fear -- or is that merely what credit card companies, banks, and all those debt resolution services want you to believe?

Instead of listening to people that have something to gain by keeping you from exercising your legal right to a bankruptcy, here are a few things you should know instead:

1. You don't have to justify your position.

If you're overwhelmed with debt and need to file bankruptcy, no one is going to pick apart every step you made before you got into that position. Most people experience a long, downward slide into debt. It can be a combination of medical bills, sudden financial needs, a broken-down vehicle, and occasional poor choices that get you into bankruptcy.

No matter what it is, however, the court isn't there to chastise you. As long as you're being honest with the court and you meet the filing requirements, it doesn't really matter what happened.

2. It doesn't ruin your credit forever.

A Chapter 7 bankruptcy falls off your credit report after ten years. However, that's only three years longer than late payments, collections, and foreclosures stay on your credit report anyhow! It's often far smarter to file bankruptcy and make a clean sweep of your debts than to struggle along with late payments and some of your accounts in collection for years. 

Long before the ten-year period is up, however, it's often possible to obtain new credit. There's a whole industry out there designed to serve the needs of people who have damaged credit. Once all your other debts are wiped out, you're probably a better credit risk than someone who is currently buried in debt -- especially since you can't file for a Chapter 7 bankruptcy again for at least seven years.

3. It stops collection calls, threats, and garnishments.

There's nothing like being afraid to open your own paycheck every week -- but that's exactly what can happen when you're struggling with unpaid bills. Creditors may try to garnish your wages in order to get what you owe. 

Even if your creditors don't try to garnish your wages, they may call constantly and virtually stalk you at home and work. They can be relentless in their demands. Some may even illegally try to contact your neighbors or family in an attempt to intimidate or harass you into paying up.

There's no good reason to fear a bankruptcy if you need to file. Consider talking to someone about the issue and get some Chapter 7 bankruptcy filing assistance today.