It is believed that bankruptcy can permanently destroy credit records. Though partially true due to the fact that your credit cards and bank accounts are immediately seized and closed by the bankruptcy courts when you file for bankruptcy, it also provides an opportunity for a fresh start as all of your previous financial records are erased, allowing you to start over financially.
The conventional belief is that bankruptcy results in the loss of control over all assets. In reality, while it is true that in certain types of bankruptcy you must surrender your non-exempt assets to the court, the law also allows you to preserve some of your valuable assets from being seized. The court permits you to retain possessions such as furniture, jewelry, apparel, insurances, retirement funds, household items, etc. You can also retain inexpensive vehicles and, in certain circumstances, your residence.
It is believed that once a person is declared insolvent, everyone will quickly learn about it. Although bankruptcy filings are recorded in the documents of the bankruptcy courts, these records are not open to the public. In actuality, individuals must complete a series of formalities and procedures before gaining access to such records. Petitioners' privacy is strictly guarded by bankruptcy courts, and their information is not disclosed to third parties unless the petitioner consents.
Despite the fact that there are unquestionably a number of negative aspects associated with declaring bankruptcy, it is an excellent method to end the harassment caused by creditors. Through incessant phone calls, text messages, and other collection attempts, creditors can cause a substantial amount of disruption. As soon as you are declared insolvent, the court prohibits all of your creditors from making contact with you. Following the filing, they may only communicate with the court regarding any questions or concerns. This offers you tremendous relief from the stress and anxiety induced by your creditors.""
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