Filing for bankruptcy also provides a highly effective legal instrument known as an automatic stay. All creditors are prohibited from contacting the debtor during the bankruptcy proceeding. This is a tremendous benefit for the stressed-out debtor who has endured months of maltreatment at the hands of extremely aggressive debt collectors.
Why, then, does bankruptcy bear so many negative stigmas that deter or discourage so many from filing? There is a great deal of inaccurate or misleading information circulating around online. Here are a few examples of the most prevalent.
The creditors are not your allies. They will threaten you with imprisonment if you do not pay them. They will tell you that you will never receive credit again or be able to obtain a mortgage and own a property if you file for bankruptcy. This obviously is not the case. The United States no longer has debtor's prisons, and many former inmates receive credit card offers within months of their release. Within a few years, if you are diligent and pay your expenses on time, you will be able to buy a car or a house. Creditors will say anything to convince debtors to pay.
Inaccurate information on the internet - Many individuals who seek answers turn to the internet. This is undoubtedly a potent instrument for gathering knowledge. However, when searching for information, individuals must ensure that they visit reputable websites. The Internet contains both inaccurate and accurate information. After conducting an initial inquiry, you should always consult with an experienced bankruptcy attorney to ask any additional questions and discuss your available options.
Family and Friends - Although family and friends can be reliable sources, they may not always be aware of the truth. You will hear accounts of acquaintances who were forced to declare bankruptcy, suffered a disastrous outcome, and lost everything. This may not be the complete truth of the situation. Even if you believe they have your best interests at heart, many people exaggerate and obfuscate the truth. In conclusion, you should counsel a bankruptcy lawyer for clarification and to discuss your options. Regarding the complexities of the bankruptcy laws, it is always prudent to consult an expert for the best possible outcome.""
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