The coronavirus pandemic has caused significant financial hardship to businesses and individuals throughout the United States. The shutdowns related to the coronavirus pandemic have spurred bankruptcy filings throughout the country. Many of the country’s biggest chain stores have filed for bankruptcy, and experts expect a wave of bankruptcy filings to happen in the next few months.
Many Americans are facing crushing debt, and they need a new start. However, the stigma that comes with filing for bankruptcy and fears of what will happen prevent many of us from filing for bankruptcy when doing so could significantly help us. We will address some of the most common fears related to filing for bankruptcy in San Diego.
- I’ll Never be Able to Get a Credit Card, Car Loan, or Mortgage
Many Americans worry that if they file for bankruptcy, they will never be able to secure lines of credit again. It is true that when you file for bankruptcy, the bankruptcy will appear on your credit report and lower your overall credit score. However, as long as you continue to make payments on time after filing for bankruptcy, your credit score will go back to a reasonable rate within two to three years in most cases. Mortgage companies and car loan companies often view bankruptcy as a wise decision, as long as the applicant makes good financial choices after filing.
- I Will Lose Everything
There is a common misconception that if you file for bankruptcy, you will lose your possessions, house, and car. Most people do not lose their personal possessions. And in many cases, you will be able to keep your home as long as the equity in your house is lower than the federal and state exemptions games. Unless you are incredibly wealthy, you will likely be able to keep your personal property. Your bankruptcy lawyer can work with the bankruptcy trustee to decide which assets you are able to keep.
- The Embarrassment Will be Too Much
One of the greatest fears about filing for bankruptcy involves what other people will think. Bankruptcy filings are technically part of the public record, but so many people file for bankruptcy that doing so is no longer regarded as out of the norm. If filing for bankruptcy is right for you and your family, then it is best to look at it as a stepping stone to a better future.
Nearly one out of every 10 people in the United States will file for bankruptcy at some point, and the stigma surrounding bankruptcy is not as serious as many people believe it to be. Additionally, you will not need to explain why you are in bankruptcy to the judge. In most cases, applicants for bankruptcy do not even speak to the judge personally.
Contact an Experienced Bankruptcy Lawyer Today
The sooner you speak with an experienced San Diego bankruptcy lawyer, the better. Contact the Bankruptcy Law Center today to schedule your initial consultation.