What Are the Benefits of Filing for Bankruptcy?
Interviewer: That’s interesting. How serious is filing a bankruptcy? Is it just a simple action with guaranteed relief? Can it be a really offer a great benefit such as giving someone the ability to start over? How serious is a bankruptcy for some people?
A Bankruptcy Can Be a New Financial Beginning for Many People
Adam: For some people it’s a new start. They might be in a position where they would have probably never been able to pull themselves out from under whatever debt they may have had.
Typically they can repair their credit after that, within a year to two depending on if they take the proper steps. Financially, it put them in a better position. Almost immediately, there is relief because they no longer have calls from creditors harassing them. This is a big emotional relief.
Will Your Bankruptcy Filing become Public Knowledge?
Interviewer: Absolutely. I would agree with that. You said there’s a stigma on bankruptcy. When someone is considering bankruptcy, I’m sure one of the first questions that they even consider is how public will the bankruptcy be. Will their friends or their co-workers or their employers find out that they filed a bankruptcy?
It Is Possible to Uncover the Information but It Should Not Cause Any Issues with Your Employer
Adam: Sometimes the information can be uncovered. However, none of my clients have ever been in the position where it created an issue for their employment. Truthfully, most of the time, my clients have already discussed it with family members at least.
One point in time they may have had a help from a family member and then they have to explain to them, “I’m going to have a file a bankruptcy. Thanks for the help but it just wasn’t enough.”
By Adam Hunt