[COLUMN] Need to file bankruptcy but worried about your credit?

IF you are in debt and are seriously considering bankruptcy as an option, I am sure a lot of thoughts are going through your mind. I just want to get out of debt and start over but how quickly can I recover from bankruptcy? What are the different types of bankruptcy available? How do I know I am making the right decision?

These are all legitimate concerns, and a competent and knowledgeable bankruptcy attorney should be able to help you determine whether bankruptcy is in fact your best course of action. I find that most people are concerned about the effects of bankruptcy on their credit more than anything else.  They are under the mistaken notion that once they file for bankruptcy, their credit is ruined forever and that they will never be able to buy a house or obtain credit again.  Of course, this is simply not true!

Yes, bankruptcy is reported on your credit record for 7-10 years (depending on the type of bankruptcy you are filing) but I’ve seen most people quickly bounce back from bankruptcy in as little as 2-3 years.  I also find that most people who are in debt trouble already have bad credit anyway and filing bankruptcy, if anything, can only help them rebuild their credit in the long run.  Yes, in most cases that I see, bankruptcy can actually improve credit by allowing the person a chance to start over after wiping out debts.

What most people don’t understand is that creditors look at several factors when evaluating a credit application, and that whether or not a bankruptcy shows up on your report is only one of those factors.  For example, when buying a home, banks are not as concerned about it if your bankruptcy is at least 3 years old and all other credit characteristics are appropriate (good character, stable employment, amount of down payment, etc.).  And if you are buying a car after bankruptcy, this is usually not a problem although in the beginning, you will obviously pay a higher interest rate or may even need a co-signor until such time you can prove creditworthiness.

Whether or not bankruptcy is the right solution for you also involves looking at your long-term financial goals. For example, while your credit may suffer for a few years, the fact that bankruptcy may be your only and quickest way to recover financially outweighs any temporary disadvantages. Have a long-term focus and start thinking outside the box.  Filing bankruptcy often means getting rid of old ways of thinking and developing a new mindset.

Filing bankruptcy may be just what you need in order to get immediate relief from creditor calls, harassment, wage garnishment and to protect your property and other assets. When appropriate for your situation bankruptcy protection can help you get out debt, rebuild your credit and give you peace of mind once again.

If you are tired of being in debt and having sleepless nights worrying about your finances all the time, your life doesn’t have to be this way and there may be something you can do right now to turn things around quickly. Let me evaluate your situation and help you explore all possibilities. For a free consultation, call Toll-Free 1-866-477-7772.

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NOTE: Due to pandemic safety concerns, I am offering free consultations BY PHONE to anyone who needs help in dealing with their debt problems. 

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None of the information herein is intended to give legal advice for any specific situation.  Atty. Ray J. Bulaon has successfully helped over 6,000 clients in getting out of debt. For a free attorney evaluation of your situation, please call RJB Law Offices at TOLL FREE  1-866-477-7772.

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