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5 Helpful Bankruptcy Secrets Most People Don’t Know

Bankruptcy Secrets

Bankruptcy shouldn’t be your financial goal, but you also shouldn’t consider it your worst-case scenario. It’s a helpful tool that makes it possible to get back on track after you’ve hit a financial bump in the road. Knowing a few bankruptcy secrets helps you decide whether filing is right for you.

As more and more people find themselves facing financial challenges they weren’t expecting and many are faced with circumstances entirely beyond their control. Financial experts predict that many of these people will be forced to turn to bankruptcy for relief. Still, many people have concerns about bankruptcy and don’t really understand how it can help them.

Understanding bankruptcy and knowing all of the secret things about bankruptcy people don’t bother telling you can ease your concerns and help you make the right decision about filing.

What are some of the biggest but least-known secrets of bankruptcy?

1. Bankruptcy is an official court matter.

This means that unless your case is sealed by a judge, it will be a matter of public record and anyone can find out if you’ve filed.

But this is no reason to be scared of filing. Chances are, nobody will check into it and the only people who will know that you filed are those you choose to tell.

2. Bankruptcy helps you with debt, but you might not be entirely debt-free when it’s complete.

As helpful as bankruptcy is for people struggling with debt, there are simply some debts that are untouchable. This includes things like court-ordered fees and support payments, as well as some student loan debts and taxes. What bankruptcy can do is eliminate dischargeable debts so you can focus more on the non-dischargeable debts you owe.

3. Bankruptcy stops all collection actions against you.

For many, this gives them the motivation to file. Filing for bankruptcy ends the calls from creditors and all other attempts to collect a debt. There’s no guarantee you’ll get to keep your home or other possessions in the long-run, but filing offers an opportunity to “stop the bleeding” and assess your situation.

To find out more about how the automatic stay works, check out this information from Investopedia.

4. Bankruptcy isn’t shameful and no longer has the stigma attached that it used to.

In this day and age, there are too many people struggling with finances for anyone to judge anyone else who files for bankruptcy. Filing isn’t just for someone with credit card debt due to careless overspending.

Often, financial problems happen after a major illness, job loss, or divorce. You shouldn’t feel embarrassed that you chose to file for bankruptcy because it’s a choice that helps you get back on track.

5. Bankruptcy doesn’t make your financial situation worse.

Filing will negatively impact your credit, temporarily, but it won’t mean you “lose everything.”

Bankruptcy is a tool that should be used when you’ve exhausted many of your other options. Taking control of your finances, even if it means this type of drastic measure, is one of the ways to make a bad situation better.

6. (Bonus!) There are No Bankruptcy Secrets When You Work with an Experienced Attorney

Someone who understands bankruptcy laws and can help you make the most of this opportunity won’t keep anything a secret. They’ll make sure you have all of the information you need to make the best decision possible.

If you’d like more information or you have questions about what goes on in bankruptcy court, contact R. Flay Cabiness, II, P.C. at (912) 554-3774 (Brunswick, GA); (912) 375-5620 (Hazlehurst, GA) or; (912) 554-3756 (Jesup, GA) to schedule a consultation.

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