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 a lot of 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 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 learn to think outside the box. Filing bankruptcy often means getting rid of old ways of thinking and developing a new mindset.
Filing bankruptcy may or may not be right for your situation, depending on the facts of your case, your goal in filing and whether or not other non-bankruptcy options exist. Let me evaluate your situation and help you explore all possibilities. For a free consultation, call Toll-Free 1-866-477-7772. We have offices in Glendale, Cerritos and West Covina.
(None of the information herein is intended to give legal advice for any specific situation. Atty. Ray Bulaon has successfully helped over 4,000 clients in getting out of debt. For a free attorney evaluation of your situation, please call Ray Bulaon Law Offices at TOLL FREE 1-866-477-7772).
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