BANKRUPTCY UPDATES

Bankruptcy FAQs: Will Bankruptcy Hurt Me or Help Me?

Some people, such as people in the credit card industry, don’t want people in debt to understand the truth about bankruptcy (because if you get your bills discharged they probably won’t get paid!).

For this reason, there are many misconceptions about filing bankruptcy — especially when it comes to what happens to credit after bankruptcy.

If you’re thinking about filing bankruptcy, make sure you get the facts and make the right decision for you.

Read on for bankruptcy information, but also keep in mind that every circumstance is different and it’s important you review all of your options.

It may also help to talk to a bankruptcy attorney about your unique circumstance.

Talk to a sponsoring bankruptcy lawyer for free:

How Does Filing Bankruptcy Help People?

For all the negative publicity bankruptcy can get from credit card companies there is little talk about the positive side of bankruptcy.

Millions of people have filed for bankruptcy protection.

Personal bankruptcy was designed to:

• eliminate or reduce debt
• stop foreclosure or repossession
• stop creditor harassment
• give people the breathing room they deserve

Many people have been able to eliminate their bills by filing Chapter 7 bankruptcy and others have been able to stop foreclosure and save their homes by filing Chapter 13.

If you’re looking for financial relief and want to learn more about filing bankruptcy, talk to a bankruptcy attorney today.

Does Bankruptcy Hurt Credit?

Don’t believe the hype: bankruptcy DOES NOT have to hurt credit scores.

It’s true that a bankruptcy filing will likely stay on your credit report for up to 10 years (typically 7 years if you file under Chapter 7 bankruptcy), but it doesn’t necessarily mean your credit will be in the dumps during that time.

It will probably be tougher to get loans or low-interest credit cards right after filing bankruptcy, but if you are seeking bankruptcy relief, your credit may not be so great to begin with.

As you keep on top of monthly payments for your rent, mortgage and utility bills, you’ll be strengthening your credit report.

If you do your research you should be able to find a starter credit card that will help you jump start your good credit history again.

This card will probably have a higher interest rate, but the point is to charge items that you normally would have bought with cash and pay it off each month (or at least pay more than the minimum monthly payment).

By using credit wisely, you’ll be proving to the credit reporting agencies that you’re a responsible credit user.

If you keep those habits up, you’ll likely see your credit score rise over time.

Your credit score probably wasn’t the best it could be before you filed bankruptcy, and it will take time to boost it up, but it can be done if you stay dedicated to responsible spending.

Should I File Bankruptcy?

Now that you know more about bankruptcy and credit, you probably want to learn more about the bankruptcy process.

A local bankruptcy attorney can inform you of the bankruptcy laws that may help you eliminate debt. Connect with an attorney today. Simply fill out the form below or call 877-349-1309 to connect with a bankruptcy lawyer near you.