Filing for bankruptcy can help you overcome your overwhelming debts and get you back on track when it comes to your finances.  However, many are afraid to file bankruptcy due to the fact that it will affect your credit.  When you weigh the fact that so will unpaid debts and bills though, you will find that bankruptcy could be your best choice.

When you are worried about filing chapter 7 or chapter 13 remember this:

  • A bankruptcy will not be on your credit forever.
  • If you are in a position where bankruptcy has become a viable option, your credit is likely to have suffered due to unpaid bills.
  • Filing for bankruptcy can be your first step to rebuilding credit, by wiping out debts.

Bankruptcy is not a short term solution to debt relief.  Filing can help you get a fresh start and allow you to change habits, or give you time to fix whatever situation brought you to bankruptcy.  Not all people are simply irresponsible, things happen, you could have lost your job, been injured or ill.

How will a bankruptcy affect my credit?

  • A bankruptcy will show future lenders that you hit a rough patch, but ultimately did what you had to do to get back on top. It’s not uncommon that you begin to see credit card and loan offers soon after your bankruptcy case has been discharged.
  • After filing for chapter 7 or chapter 13 you will begin to see that it’s easy to tackle one or two payments at a time, and this will help you rebuild your credit.
  • In some cases having filed for bankruptcy will actually make you look better to lenders.  The reason being now you will have more disposable income and cannot file for bankruptcy again for eight years.  This is not however and excuse to take every loan offered to you, but it will make it easier.

Bankruptcy will not ruin you or your credit score forever. Sitting down and speaking with an excellent bankruptcy attorney can help you realize all of the great things that bankruptcy can do for you. They can help answer all of your questions regarding your case, and help you move forward financially.

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