Hi – I’m Danielle Colyer an Attorney practicing bankruptcy law.
When I hear people talking about bankruptcy, most of them have it all wrong.
So many of the fears about filing bankruptcy are rooted in the fact that people just don’t understand how bankruptcy works.
Irrational thinking and fear hold smart people like you from using one of the most straight-forward and helpful processes in the legal system to your financial advantage.
Other fears are created by creditors who profit from you staying in debt or predators who want you to buy their service for a magical, painless non-bankruptcy solution, many of which are far worse than the bankruptcy process itself because they will financially and emotionally haunt you for years.
The fear of filing bankruptcy keeps countless people mired in debt for what can seem like an eternity with no end in sight.
Are you one of them?
Well, now you can relax because there’s little to fear.
Almost everyone I have ever represented has been a decent, hard-working person that got into financial trouble due to a job loss, health problems, or they simply made some bad decisions that they could not recover from
There are a few rules in bankruptcy and the process really isn’t that hard, especially when you have someone you can trust to represent you during the process.
I’m here to dispel these myths, and this video series will help you decide whether bankruptcy is right for you.
So, let’s look at the fears that are in the way of keeping you from solving your financial problems and getting a fresh new start in life. And along the way, you’ll find there’s little, really, to be afraid of.
So let’s get started.
Bankruptcy Fear #1
You friends, family or colleagues or employer will find out.
What your friends and loved ones think of you is a powerful motivator for anything in life.
The fear that filing bankruptcy will become public knowledge can be paralyzing and emotionally draining.
On top of that, the stress of dealing with obnoxious bill collectors will pale in comparison to the possibility that someone you know will find out about your bankruptcy case.
Here’s the truth. Bankruptcy cases are public court records, but generally the information on an individual bankruptcy case is not published unless it is newsworthy. So unless you’re an attorney or have access to the federal bankruptcy docket, it’s highly unlikely that anyone but your creditors will know you have filed for bankruptcy.
Your creditors are notified by mail, along with certain government agencies.
Most newspapers do not have the time, interest or resources to gather and publish lists of the people who have filed bankruptcy so the days of publishing a bankrupt’s name in a list of the legal notices of the local newspaper are mostly long gone.
The chances of your acquaintances finding out are slim to none, unless you tell someone else or tell them yourself.
In most cases, employers will not find out about the bankruptcy, unless you choose to tell them. Either way, employers are not allowed to fire someone (or take other adverse action) for filing bankruptcy.
It may even calm you to know that about one in ten adults will file bankruptcy sometime over the course of their lives. So, next time you’re in church or at a family gathering or even watching the game with friends, think about the people sitting near you have or will eventually file bankruptcy. You’re in good company.