Most people are concerned with the one major aspect of filing for bankruptcy and going through the process; that it will hurt their credit. Bankruptcy however, does not have to destroy your credit scores. A bankruptcy filing will be on your credit report for up to 10 years but this is typically 7 years if you file under chapter 7 bankruptcy. It will be much more difficult to get low interest credit cards or loans immediately after filing bankruptcy but your credit is probably already in a difficult situation if you’re contemplating filing for bankruptcy to begin with. Trying to keep on top of your monthly payments for your mortgage, rent and utility bills, you’ll be working to strengthen your credit. You may be eligible to finally start a credit card that can assist you with establishing good credit history all over again. A higher interest rate may be tied to this card but the purpose is to use this card for items that you would have bought with cash and to pay it off each month. Using your credit intelligently, you’ll be able to indicate to the credit reporting agencies that you are a responsible user of credit. Although publicity for bankruptcy can be negative from the credit card companies, there are many positive sides to bankruptcy, particularly for the millions of individuals who have gone through the process of obtaining bankruptcy protection. Personal bankruptcy was designed to and helps many people accomplish the goals of:
- Stopping creditor harassment
- Reducing or eliminating debt
- Stopping repossession or foreclosure proceedings
- Giving people the fresh start and the breathing room they deserve
Do not allow the stigma of bankruptcy to cause you to avoid filing for this necessary protection if you are already in over your head financially. It can be difficult to accept the many different challenges associated with bankruptcy. However, moving forward and filing for the benefits that you need to protect you and to give you a fresh start can be empowering. Finding the right bankruptcy attorney to assist you through this process is a crucial component of your success.