People in severe debt crisis usually do not know the appropriate ways of emerging out of the situation. There are several reputed debt solution services that can effectively provide you the help and assistance you need to overcome your financial crises. However, while there are a number of debt solutions available for individuals to deal with debt situations, every solution has their own set of advantages and disadvantages. Hence it is extremely important to get the right advice regarding the solution that would effectively relieve you of your difficulties.
If your debt situation is severe, and you are in no position to pay them off, filing for bankruptcy can be one of the most ideal options for you to cope with the crisis. However, because there are various negative opinions linked with this procedure, people might be too hesitant to opt for it. Let us discuss and clear some of the conventional misconceptions associated with the concept of bankruptcy:
- It is believed that bankruptcy can ruin your credit records forever. Though partially true owing to the fact that your credit cards and bank accounts are immediately seized and closed by the bankruptcy courts the moment you submit a petition for bankruptcy, it also provides an opportunity for a new beginning in the sense that with all your past financial records cleared you can start afresh.
- The conventional belief is that with bankruptcy, you lose control over all your assets. In reality, though it is true that in some forms of bankruptcy, you have to hand over your non-exempt properties to the court, there are also provisions in the law to enable you to protect some of your valuable assets from being seized. The court allows you to keep properties like furniture, jewelry, clothing, insurances, pension funds, household items, etc. You can also keep vehicles that are not expensive and in special cases your home.
- It is believed that once you are declared bankrupt everyone would easily come to know about it. The truth is, though bankruptcy filing is kept on record in the documents of the bankruptcy courts, it is not for everyone to see those records. As a matter of fact, people have to go through a series of formalities and procedures before they can actually get hold of such records. Bankruptcy courts are absolutely protective about the privacy of petitioners, and do not share their information unless they want to share it with others willingly.
While there are undoubtedly various negativisms involved in bankruptcy filing, it is nevertheless an excellent way to get rid of the harassments caused to you by creditors. Lenders can cause a considerable level of disturbances through constant phone calls, messages and other forms of collection attempts. The moment you are declared bankrupt, the court puts a bar on all your creditors to make any kind of contact with you. Following the filing, they are only allowed to communicate with the court for any of their queries and concerns. This provides you a huge relief from the stress and anxiety caused to you by the lenders.