Is There Life After Bankruptcy?


Even when faced with a financial crisis, many people hesitate to declare personal bankruptcy, primarily because they think they’ll never be able to take out a home mortgage, obtain a credit card, or buy a car again. They envision themselves having to pay bills through Western Union, and being unable to use a credit card to book a hotel room or purchase airline tickets.

Fortunately, that is not the case. Although a Chapter 7 bankruptcy will stay on your credit report for ten years, it won’t keep you from rebuilding your financial life.

First, when you get rid of your unsecured debt through bankruptcy, your credit score will actually improve (assuming that you’re already more than 30 days behind on your payments anyway). Your credit reflects not only your credit history, but also the amount of debt you have… so the part of your score related to your debt will go up when your debts are discharged.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Jay Fleischman, Shaev & Fleischman LLP | Attorney Advertising

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