It’s very common for debtors to be fearful about taking action to file for bankruptcy. Making the decision to file for bankruptcy under Chapter 7 means admitting that you have a serious debt problem. This is the first step in a complex debt resolution process.
Filing for bankruptcy also involves committing to change. Even though change can be uncomfortable, it is often both necessary and rewarding. Bankruptcy can help you live a fulfilling life that is free from the burden of debt. Therefore, you should address your fears and then move forward with your plan to resolve your financial dilemmas.
The fear of losing all assets
Filing for Chapter 7 bankruptcy means that all non-exempt assets will be subject to liquidation. This means that other than allowances for cars and other property, all your assets will be sold to pay off your debts. If you do not have a sufficient amount of assets, however, all your property may fall within the exemption limits.
Fear of not being able to get loans in the future
Your credit score will certainly take a hit when you file for bankruptcy. This may mean that you will struggle to get a mortgage or credit cards in the years to come. While this may seem like a huge disadvantage now, remember that this could work in your favor. After your debts have been discharged, you can work on accruing some savings so that you do not have to rely on credit going forth.
Filing for bankruptcy can be a way for you to regain control over your life. Being free of debt will feel like a weight lifted off your shoulders, and you should be able to enjoy your life once again.