If you’re struggling with debt – and many people are these days – talk to a bankruptcy attorney now. According to an article in the Tampa Bay Times, those who do much better in the bankruptcy process are the people who get advice from an attorney early.
You are not obligated to file if you contact a bankruptcy lawyer, but you can obtain insight and knowledge that might benefit you later, should you choose to take action to clear your debt.
Bankruptcy myths that prevent people from filing
Unfortunately, some people who are struggling to make ends meet put off taking any action, even though their debt is growing each day. The following myths about bankruptcy play a role in their decision not to file:
- Myth No. 1: “I will lose all my possessions.”
- Myth No. 2: “My credit will be permanently ruined.”
- Myth No. 3: “I don’t need to file because my financial situation will get better in the future.”
Fear of losing possessions
A bankruptcy filing won’t mean you lose your car, home or other possessions. Most people who file under Chapter 7, which is the most common way to file, don’t lose any of their possessions. You generally can keep things like clothing, wedding rings and professional tools, as well as some equity in your home or vehicle.
Rebuilding credit
You start to rebuild your credit once your bankruptcy is discharged. While you will have limited access to credit for a period of time that the bankruptcy remains on your report, the impact of the filing will not be permanent.
Misplaced optimism
Being optimistic is healthy in many aspects of life, but when it comes to debt and bankruptcy you need to be realistic. Many people in debt might look ahead and think their income will increase down the road, so they may delay taking any action to make a fresh start now.
In some cases, people hoping for a brighter future start to drain their retirement funds, which would be protected if they filed for bankruptcy immediately. A delay also might make it difficult to come up with fees associated with filing.
Anxiety makes it harder to file
Drowning in debt creates stress, anxiety and even depression – states of mind that make it difficult to take action. Many bankruptcy attorneys often meet with clients who bring in grocery bags full of unopened bills. They say they couldn’t bear to open them anymore and put off calling an attorney for help with bankruptcy.
How an attorney can help
The experienced bankruptcy attorneys at Matthews & Associates, LLC understand how difficult life can get when debts pile up. You’re not alone if you are struggling. According to the Tampa Bay Times article, about 14 percent of households owe more than they own. Many could benefit by filing for bankruptcy, but fewer than 1 percent of households file each year.
We help people across South Carolina make a fresh start. You can arrange a free consultation with Ben Matthews, an experienced and compassionate attorney. You don’t need to meet in person. In response to the safety concerns of the pandemic, our law firm offers consultations by phone, video conference or email. So, don’t hesitate to contact us today.