It is common for California residents to feel a bit on edge whenever someone brings up bankruptcy. You and many other people have likely heard that bankruptcy causes substantial damage to credit and that it does more harm than good. However, that is not necessarily the case.
Many people find the debt relief they need to get back on stable financial ground after successfully completing the bankruptcy process. If you are struggling with substantial debt, you may be going back and forth between whether utilizing this debt relief option is the right move for you. Having more information may help you with the decision.
The truth about bankruptcy
Many people have fears about bankruptcy because a lot of misinformation about the process exists. Whether from friends and family or untrustworthy websites, the advice people receive about whether to file for bankruptcy is not always accurate. If you want to decide whether this option is right for you, you may want to look at the following information:
- Bankruptcy affects your credit: You may be thinking, “I knew it!”, but the reality of the situation is that your credit is likely already on the low end of the spectrum if you have struggled with debt for some time. Plus, you can take steps to rebuild your credit after the discharge of debts through bankruptcy.
- You will need to be honest: If you truly want bankruptcy to help you, you will need to provide honest information about your outstanding debts, current income, assets, expenses and recent financial transactions. If you provide false information or leave something out, you could face negative repercussions.
- Bankruptcy takes time: Like any legal process, bankruptcy can take a considerable amount of time to complete. A Chapter 7 filing could take four to six months, and a Chapter 13 case could last three to five years.
- Bankruptcy can be confusing: You will need to fill out a lot of paperwork, and you may not always fully understand what they mean. Fortunately, you can reach out for support to fill out your documents correctly.
Bankruptcy is a beneficial process for many, but it is not necessarily easy. You may believe that it could help you escape your debt burdens, but you may worry that you do not have what it takes to complete the process. Before you write off this option, you may want to discuss your financial affairs with a bankruptcy attorney who could provide you with assistance and reliable information.