When Escondido residents get to the point where they are considering the possibility of filing for bankruptcy due to the state of their finances, they have probably exhausted all other options. In the lead-up to this point many people will attempt to make severe changes to their financial situations, such as cutting back on spending where they can and doing their best to pay more than the minimum payments on debts owed. However, for some people, even their best efforts won't be enough to get them out of a bad financial situation.
The good news is that bankruptcy is a tool for consumers to use when their debt burden has become overwhelming. The bad news, however, is that many people only know about the drawbacks to filing for bankruptcy, and some even believe the "myths" that have developing regarding filing for bankruptcy.
For example, some people who would otherwise benefit from filing for bankruptcy are deterred because they believe that part of the process is a seizure of all of their assets, which are then sold off to satisfy debts. However, any of our readers who are familiar with previous posts here regarding bankruptcy exemptions know that isn't what happens. Many of a person's assets, such as clothing, furniture and tools of their trade, typically will not be part of the bankruptcy filing.
At our law firm, we do our best to inform our clients about the pros and cons of filing for bankruptcy. And, we attempt to point out where "myths" have gotten the better of our clients' thinking. For more information, please visit our website.