Financial difficulties can arise for many reasons, such as loss of a job, death of a breadwinner or too many credit card purchases. Money problems can be emotionally wrenching and seriously damage family relations. However disturbing the idea of bankruptcy might initially seem, in fact, bankruptcy laws are there to help those who are unable to pay their bills.

One thing people worry about when they think about bankruptcy is that it’s the end of their life, whereas actually what they learn throughout the process it’s actually the beginning of a new stage or chapter in their life. The preconceived notion is that they’re going to lose everything. Actually, the only thing that they lose is their debt. For Chapter 7, we wipe out the unsecured debt, and they keep their assets. If they’ve got too much equity in their assets, then we look at a Chapter 13 to save those assets.

Other good reasons to file a Chapter 13 would be that you’ve got tax problems. It doesn’t matter if it’s real estate taxes or income taxes, we can resolve those issues, and if you’re behind on a vehicle or it’s even been repossessed, as long as it hasn’t been sold, I can file Chapter 13 and get that vehicle back for people.

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Myth #1: You will never get credit again if you file for bankruptcy.
False. Although a bankruptcy can stay on your credit report for up 10 years from the date of filing, you can start rebuilding your credit as soon as your bankruptcy is closed and discharged. Many people who file for bankruptcy purchase new homes, vehicles, and even qualify for credit cards a few months after the bankruptcy is discharged. In fact, many creditors will start offering credit right after the discharge. With proper planning and counseling, you can get new credit much sooner than you think.

Myth #2: You can only file for bankruptcy one time.
False. While the bankruptcy laws were tightened in 2005, you are still permitted to file for bankruptcy more than once, depending on when you filed and the type of bankruptcy.

Myth #3: Bankruptcy will destroy your credit score.
False. While your credit rating will be affected when you file, it will not be destroyed forever. Depending on your situation and level of debts, you may actually increase your credit score by filing for bankruptcy. Bankruptcy helps eliminate the negative consequences of your unpaid debts, whether you file under Chapter 7 or Chapter 13. Ten years after filing, the bankruptcy will also be removed from your credit report, revealing a clean slate.

The end of your bankruptcy proceedings can provide you with a fresh start. The court order will end your responsibility for dischargeable debts. Although filing for bankruptcy can be a very difficult decision in your life, the absence of all of the financial distress will ultimately help you and your financial life moving forward.

If you or someone you love is seeking debt relief and has questions about bankruptcy, contact us today to arrange a free confidential consultation with bankruptcy attorney Scott F. Humble. Let his 30+ years of experience work for you.

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Once you file for bankruptcy, an automatic stay will go into effect which stops most wage garnishments and prevents creditors from seeking new garnishments while the bankruptcy case is proceeding.

If you’re considering filing for bankruptcy, contact experienced Bankruptcy Attorney Scott Humble for a free consultation.

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