Many who can benefit from bankruptcy are hesitant about applying for it due to the numerous horror stories they have heard from other people over the years. It is a concern to consider how it will impact your life with regard to large purchase and loan lines. Are your finances damaged? Or, is it the chance to have a fresh start and the chance to make things right?
The help of a bankruptcy attorney can inform you about the various kinds of bankruptcy that are available and debunk some of the myths that you have heard that have deterred you from filing for bankruptcy for a long time.
Contrary to what you may have heard, bankruptcy isn’t an unwelcome mark on your financial records for the rest of your life. You could be able to get credit once again faster than you might have thought. Credit card offers could start coming in before your bankruptcy case has even been closed. These may not be the most attractive offers on the market and probably have higher interest rates and may also require the deposit of a security. If you choose to sign up for one and remain on top of all payment obligations, you can start building credit quickly and notice a dramatic improvement in your credit rating in less than a year.
It is also possible to be able to secure mortgages if you improve your credit, and make bankruptcy filing without trouble with a bankruptcy lawyer. Your lawyer will provide advice on how you can begin your new financial life; however, it can require patience. The bankruptcy will remain at the top of your credit score for ten years.
Also, you do not need to give up all your possessions in bankruptcy. If you file for personal bankruptcy, significant assets like homes and cars are not exempt from liquidation under federal law. Your bankruptcy lawyer will explain to you what assets you could require to liquidate should you decide to apply for Chapter 7 bankruptcy. If you choose to go with the Chapter 13 route, you will eventually repay your debts, and you will not be obligated to liquidate any assets. In this case, you have nothing to lose.
This article was written by Alla Tenina. Alla is a top personal injury lawyer in Orange County CA, and the founder of Tenina law. She has experience in bankruptcies, real estate planning, and complex tax matters. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.