5 Myths About Bankruptcy
You may have heard of the idea of bankruptcy making it very difficult for you to acquire credit products in the future. While there are some consequences to filing for bankruptcy it’s often made out to be a much worse experience than it is to live. As a bankruptcy lawyer we commonly receive a number of questions regarding the myths about bankruptcy. Most concerns that people have come as a result of older myths surrounding bankruptcy. Here are some of the top misconceptions that are often promoted as bankruptcy myths:
1. You will never qualify for credit again with bankruptcy filing.
Filing for bankruptcy can often stay on your credit report for around 10 years after you filed. It is easy to start rebuilding your credit as soon as your bankruptcy is discharged. Although you may have to use secured cards or a higher interest rate, you can start immediately building your credit after your bankruptcy is filed.
2. After filing for bankruptcy your creditors may report you to the police.
Filing for bankruptcy under Chapter 7 or 13 can help you out of a difficult financial situation. Choosing bankruptcy relief with the help of a bankruptcy lawyer can make sure that you can choose an option that can help you find assistance in a very difficult time. Choosing bankruptcy relief doesn’t make you a bad person and it’s not going to land you in a jail cell either. Bankruptcy is a tool to help you out of an extremely difficult financial situation where you cannot repay your debts without help.
3. Filing for bankruptcy will lead to ongoing audits and it’s difficult.
Filing for bankruptcy with a bankruptcy lawyer is much easier than it was in the past. There are various forms that need to be filled out and submitted to a court but a bankruptcy lawyer can help you handle these forms electronically. With the help of a simple intake form and documentation of your finances you can be set up with a proven system to file for bankruptcy.
4. You can only file for bankruptcy once.
bankruptcy laws did change back in the year 2005 but anyone is permitted to file for bankruptcy several times depending on the type of bankruptcy that they filed for. You can declare chapter 7 bankruptcy once and receive a discharge every eight years and Chapter 13 when you receive a discharge every two years.
5. Bankruptcy is a death sentence for your credit score.
your credit score is going to be affected when you file but it’s not something that you can’t overcome. The betting on your current situation and the level of debt it’s possible that your credit score could actually increase through a bankruptcy filing. By eliminating some of the negative consequences with your unpaid debts it’s possible to start rebuilding your credit again. A decade after you file for bankruptcy the report will be removed from your credit report for a completely clean slate too. We have assisted clients who have purchased vehicles while in a bankruptcy.
The process of filing for bankruptcy doesn’t have to be a complicated or negative solution in your life. For many people, bankruptcy can represent a lifeline and by remembering that some of the most negative reports on bankruptcy often come as a result of the myth, you can see the idea of bankruptcy with open eyes. If you are interested in fixing your debt crisis contact our bankruptcy lawyer today. We can make sure that you can get through bankruptcy in the most efficient manner possible. We want to answer your questions and help you feel comfortable about bankruptcy as an option for your financial future.