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Fear of Bankruptcy

by John G. Merna

Courage is resistance to fear, mastery of fear, not absence of fear. ~ Mark Twain


Anyone who does not have some hesitation about wandering into the unknown, even if it is the legal unknown, is a fool. As Mark Twain implies, even the hero experiences fear. To be the hero in your own life and come back from the threshold of financial devastation you have to resist the fear created by “fairy tales” about bankruptcy and wander into to the dark forest to find the truth. The truth about bankruptcy, as in fairy tales, can wake the sleeping princess, open the magic door or in your case, give you a financial fresh start. Here are the five most common fears voiced about bankruptcy before the “hero” wanders into the forest.

Fear 1: I will lose my house, my car and all my property if I file bankruptcy.

Reality:  You will not lose your house, car and, in most cases, any property.  Ninety-nine percent of the people who file bankruptcy with a good attorney lose nothing. The other one percent either did not use an attorney or used an attorney who was not an experienced bankruptcy practitioner.

Fear 2: I won’t be able to get credit for 7 years.

Reality: You can get credit right after completing your bankruptcy (discharge). However, you will pay higher interest rates until you go through the process of rebuilding your credit. But think of it another way: what credit do you really have with unpaid bills, collectors calling, and your score dropping through the floor? Fear of not having credit is not logical and is just that – fear.

Fear 3: They may not approve my bankruptcy.

Reality:  With a competent bankruptcy attorney your approval is guaranteed. A bankruptcy attorney that specializes in bankruptcy and has years of experience in bankruptcy analyzes your case just like the court will.  The attorney can tell you exactly what problems you might encounter or assure you there will be no problems.

Fear 4: I am too embarrassed to file bankruptcy because people might find out.

Reality:  Bankruptcy is public record. However, I have yet to find anyone who searches out to see if their neighbors or friends filed bankruptcy. And if such a person really exists, is that the type of opinion you should value? Your friends and family should be your booster club, wishing for your financial recovery, not judging your decisions. Sometimes it is not your own fear that immobilizes you, it is the fears of others. Don’t let other people pass on their fear and fairy tales to you. Find the truth by talking to a qualified bankruptcy attorney.

Fear 5: I will be a bad person if I file bankruptcy.  It is like cheating.

Reality:  Bankruptcy is your federal right. Congress has protected your right to a “fresh start” by making it illegal to discriminate against anyone who has filed bankruptcy in hiring. These days many people are advised by the government and the military to seek bankruptcy protection to avoid losing the security clearance, being kicked out of the military, or being garnished. As citizens it is our “right” and the government has embraced this “right” and support it to help the economy and individual.




 The Merna Law Group, Attorneys At Law, P.C. …kind and friendly from the start!5 Stars! “Everyone there was kind and friendly from the start and helped us with everything in a timely manner. They were never rude no matter how much we called or asked questions.” Reviewed by B.P. of Virginia Beach on Feb 20 . 
 The Merna Law Group, Attorneys At Law, P.C. …debt free!5 Stars! “A friendly staff and outstanding attorney who helped me through a difficult time in my life. Thanks to everyone at the Merna Law Group who helped me move on to and new chapter in my life debt free!” Reviewed by M.F. of Norfolk on Mar 8 . 
 The Merna Law Group, Attorneys At Law, P.C. …very helpful and friendly!5 Stars! “Everyone at the office was very helpful and friendly. The attorney answered all of our questions and helped us through the entire process. He was also very helpful answering concerns that we had after the process was completed/over. Highly recommended!” Reviewed by M.E. of Virginia Beach on Mar 11 . 
 The Merna Law Group, Attorneys At Law, P.C. …overall experience was outstanding!5 Stars! “My husband and I were very happy with The Merna Law Firm. They are well organized, time manageable, and friendly. I was even able to bring my children with me if I needed to. In court, they stayed right there beside us and answered all questions we had. Our overall experience was outstanding and I am glad we were represented by the Merna Law Group.” Reviewed by A.M. of Suffolk on Mar 5 . 
 The Merna Law Group, Attorneys At Law, P.C. Didn’t have to worry about anything!5 Stars! “Just keep providing the type of service you do. You business values are based off reliability and service. Today’s Law Offices just don’t offer that kind of experience. Didn’t have to worry about anything!!! Just being able to go on with my normal life and know that all my issues are well taken care of is a relief in itself.” Reviewed by A.P. of Virginia Beach on Mar 4 .