Does and Donts of Bankruptcy

Bankruptcy and Fear of The Unknown - The Process Involved

Unlike the problems you deal with everyday in life, the fear of the unknown can be unrealistically frightening. Regardless of if you are getting to live through a tornado or waiting for one of your children first day of school, not knowing what the final result will be is more stressful then the actual outcome will ever be. The fear of filing for bankruptcy may be the worst one of all and this fear keeps many people from fixing their debt-related financial problems and keeps them mired in financial difficulty. When it comes to personal bankruptcy people fear losing their home, having their wages garnished, and being branded a failure.

One of the largest concerns preventing individuals from declaring bankruptcy is the concern over loosing their house and as a result being forced to move in with family members. But don't worry, your home is listed under Section 1 of Homestead and Exemptions as property that is exempt from attachment, execution or forced sale in Bankruptcy proceedings provided that it is the principle residence where you reside. Your house is protected in bankruptcy law. You cannot be forced to sell your primary residence or move out of it. You will not have to leave your home and live with relatives.

Another thing that people are afraid of in a bankruptcy is that the bank or lenders will garnish their wages and leave them unable to provide food and shelter for their family. Once again, you need to remember that bankruptcy is available to you for your financial protection, not to put your family out on the street. In a worst case scenario, up to 25% of your wages can be garnished to pay your creditors leaving you with 75% of your income. This will enable you to keep your lifestyle basically intact, pay your creditors, and take a major step to getting back on track and moving toward being financial responsible once again.

Lastly, people avoid filing for bankruptcy protection because they are afraid of being branded a failure. You should know,however, that most of the great entrepreneurs of our time have filed for bankruptcy at one time or another and some have filed many times. An example include the late great Walt Disney. Walt was once terminated by an employer for not having a great enough imagination. Walt filed bankrupt two or three times before his first great success at Disney Animation Company. The original bankers who considered lending him money for the theme park denied him believing that his idea for the park was not viable.. Henry Ford, the great automobile manufacturer credited with the invention of the assembly line went bankrupt twice before his Ford Motor Company finally became viable. And in case you think bankruptcy was a thing of the past, one of today's most respected billionaires Donald Trump has filed for corporate bankruptcy four times, in 1991, 1992, 2004 and 2009. So as you can see, filing for bankruptcy is a common strategy that is more a sign of an overall business downturn than a reflection of your character as a person. Many people share filing bankruptcy with you and they will tell you not to be shameful for protecting yourself by filing bankruptcy.

Oklahoma bankruptcy law is in place to protect you from experiencing financial hardship as a result of borrowing too much or paying too high an interest rate on your loans. You need to call an experienced Oklahoma Bankruptcy attorney that will put your mind at ease and patiently explain to you why bankruptcy exists not for punishment, but for your protection.