Rumors About Filing Bankruptcy Continue to Run Rampant

Rumors About Filing Bankruptcy Continue to Run Rampant "There have been numerous misconceptions and rumors about what happens to bankrupt individuals over the years. Many people believe they will lose everything if they declare bankruptcy. This is far from the truth; in fact, it would be impossible to obtain the fresh start that bankruptcy promises if one's belongings were taken away and auctioned off. Congress enacted exemption laws for bankruptcy that shield a substantial quantity of property from seizure by the bankruptcy estate. In today's economy, almost nobody loses money. The bankruptcy trustee must consider the costs of collecting and selling the property. With the value of everything declining, it is typically not worthwhile to sell an item unless it is extremely valuable. The last thing a bankruptcy trustee desires is to come to someone's home, load up their belongings, and transport them to a local swap meet. Collecting and selling it costs more time and money than what is recovered.Another bankruptcy misconception is that a person's credit will be ruined and they will never be able to obtain credit again. Clearly, the credit industry is responsible for the development of this. At the time a person needs to file for bankruptcy, their credit score cannot decrease any further. When a person in this situation exercises their right to file for bankruptcy, their credit score can only increase. Many individuals receive credit offers in the mail shortly after receiving their bankruptcy discharge. At this time, the individual must exercise caution and avoid getting into the same problems that led to their previous bankruptcy filing. People must realize that creditors are opportunists and are aware that those emerging from bankruptcy are debt-free or near to it. As long as they maintain employment, creditors view them as a source of revenue.Personally, I believe that the majority of Internet falsehoods are spread by creditors. Prior to filing for bankruptcy, I have personally overheard individuals discuss creditors threatening them with prison time if they did not make a payment. Indeed, many creditors have become more aggressive in recent years. Typically, debt purchasers who acquire debt from the original creditor engage in unethical debt collection practices. Since they purchased the debt for pennies on the dollar, they know that if they can keep the debtors frightened enough to continue making payments, it's all profit from there. It is intriguing that it is common for bankruptcy attorneys to relate tales of clients wishing they had filed sooner. The decision to file for bankruptcy is a difficult one, but individuals must remove their emotions and ego and make a rational choice with the assistance of a bankruptcy attorney.
" - https://www.affordablecebu.com/