Bankruptcy: Myth Vs. Reality

Bankruptcy: Myth Vs. Reality

Many people who can be helped by bankruptcy fear filing for it because of all the horror stories they may have heard from others through the years. You wonder how this will affect the rest of your life in terms of major purchases and credit lines. Will your financial life be ruined? Or, will it be the promise of a new beginning and a chance to get things right?

A Los Angeles bankruptcy attorney can educate you on the types of bankruptcies that exist, as well as dispel many of the myths you may have heard that have discouraged you from filing bankruptcy for years. Contrary to popular belief, bankruptcy will not be a stigma on your financial record forever and you can obtain credit again, and a lot quicker than you may have imagined. Credit card offers may actually begin pouring in before your case has even closed. They may not be the best offers in the world and will most likely come with high interest rates and could also require a security deposit. But, if you choose to open one and stay current with all payments, you can begin to rebuild your credit fairly quickly and see a substantial raise in your credit score within a year.

You will also one day be able to get a mortgage if you rebuild your credit and also file bankruptcy without any hassle by using a Los Angeles bankruptcy lawyer. Your attorney will advise you on how to start a new financial life, but sometimes that can take patience. A bankruptcy will stay on your credit report for 10 years, but as long as your credit score rises, your chances for large purchases like a home or vehicle will rise with it.

You also do not have to surrender all your property when declaring bankruptcy. For personal bankruptcy, major possessions like a home and a car are exempt from liquidations, according to federal law. Your bankruptcy attorney in Los Angeles will explain to you what items you may need to liquidate if you choose to file Chapter 7 bankruptcy. If you go the Chapter 13 route, you will eventually pay back your debts and not be forced to liquidate anything. In that case, there is really nothing to lose.

Bankruptcy is not as fearsome as you may have previously thought. It has saved countless people from financial ruin, rather than creating it. If you feel ready to take that step and start over, contact a bankruptcy lawyer in Los Angeles today.


Share this post