Getting Past the Stigma of Filing for Bankruptcy Protection
May 1, 2022 By: Carrie Weir
Bankruptcy is Not a Sign of Failure | The Benefits of a Personal Bankruptcy
You’ve lost your job because of the pandemic, or you’ve suffered a serious injury or illness, incurring thousands of dollars in medical bills that aren’t covered by insurance. The bankruptcy laws are there to protect you, to give you a chance at a new start, but you’re unwilling or afraid to file a bankruptcy petition because of fears about what friends and family will say. Consider the following:
- While lenders typically look at credit records and credit scores at the beginning of the loan process, many are more concerned about what you’ve done lately than what happened a few years ago. Furthermore, many will consider your willingness to seek protection in bankruptcy as a positive step, reflecting your determination to get past your financial challenges. Of course, it’s important, if you do choose to file for bankruptcy protection, that you make positive and permanent changes in your spending habits and your diligence in honoring your financial obligations. In other words, don’t do the same things that got you in trouble before.
- While your credit record may take an initial hit, it will typically turn around pretty quickly, provided you honor your financial commitments. Without a bankruptcy filing, your payments may be delinquent for months or years, causing your credit record to further deteriorate. When you discharge or restructure debt in bankruptcy, your record may initially reflect the bankruptcy filing, but you won’t have persistent delinquencies, as you should now be able to meet your monthly obligations.
- Many famous and very successful Americans have sought protection in bankruptcy, including Walt Disney, Mike Tyson, and nine U.S. presidents, including Thomas Jefferson, Abraham Lincoln and Harry S. Truman.
- Contrary to the false assertions of some pundits, the vast majority of American bankruptcies are not the result of profligate spending, but the consequence of unexpected medical challenges, as well as dramatic changes in the economy.
Contact an Experienced Rockwall, TX Bankruptcy Attorney
At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County and the surrounding counties.