Many people are under the impression that filing for bankruptcy can cause them to lose their homes and cars. These individuals may already be drowning in debt and struggling to make payments to keep their homes out of foreclosure and their vehicles out of repo status. Bankruptcy can help those who are having trouble with debt to overcome their financial issues and save their property, in some cases.
It goes without saying that you never want to find yourself facing a financial challenge. In a perfect world, you would always have enough money to pay your bills, save a bit, and enjoy yourself.
As a homeowner, you know that you have a variety of obligations with regard to your finances. For example, you have to make your mortgage payment every month. Along with this, you have tax and insurance obligations.
Filing for bankruptcy is an option when your debt seems out of control. Usually, it is a great way to protect some of your assets, especially those that are used in the production of income. But what happens if you forgot to mention that $150,000 you received when you sold your home? Or the cash you have sitting in the offshore account?
One of the most terrifying things about deciding to file for bankruptcy is the possibility of losing your assets, including your home, your personal vehicle, and anything else of value you've acquired, purchased, or inherited over the years.
"Bankruptcy" often feels like a huge intimidating word looming over our heads when we're facing severe debt, but in reality, there are a lot of false ideas about bankruptcy that make it seem scarier than it is.
For most of us, debt problems begin with credit cards. If we lose our jobs or have a health problem or get divorced, we turn to our credit cards "just temporarily."