Bankruptcy is a subject that is rife with misconceptions. One that is perhaps most commonly held in Arkansas is that going through either Chapter 7 or Chapter 13 bankruptcy means that the filer is forever destined to be saddled with a credit score so low that hope of ever obtaining a home loan, car loan or even a standard credit card must be abandoned.
For many, nothing is scarier than being served by a credit card company on money that is owed. On first learning that a company is willing to take someone to court in order to recover this money, many panic, wondering what exactly the future will hold.
There was a time when pensions were the norm. Individuals went to work for companies with the hope of being part of a great pension plan that would take care of them in retirement.
You read that headline right. We are talking about debt threats, not death threats. This is a bankruptcy law blog after all. That said, the fear factor that can be associated with either one or the other of those threats might be nearly equal.