Economics Finance

Filing for bankruptcy ruins your credit for 10 years.

Not True. As with any other credit information, the fact of the bankruptcy can stay on your credit report for 7 to 10 years. (Remember, if you are considering bankruptcy it is highly likely that your credit rating has already been damaged, especially for the purpose of obtaining a home loan.) You can start rebuilding your credit, however, even before your bankruptcy is completed. Continuing to make your house or car payment on time can help you reestablish a good credit rating, as can making timely payments on a Chapter 13 plan or on any new loans.

Everyone will know you filed for bankruptcy.

Not True. The fact of your bankruptcy is a public record but unless you are a prominent official or high profile person, people aren’t going to go looking.

After the recent changes to the bankruptcy law, filing bankruptcy doesn’t help much.

Not True. The 2005 changes mean that a few people may no longer be able to file a Chapter 7 case, but most people are still able to get the same relief now as before the law changed. If a Chapter 7 is not available to you because of the 2005 changes, Chapter 13 may still offer you significant relief.

You are a bad person for filing bankruptcy.

Not True. Bankruptcy is a solution to help good people go through a tough financial time. It provides people with the fresh start that they deserve. Congress passed the bankruptcy laws because Congress recognized that we needed a safety net in our economic system for individuals, who have little control over large shifts in our economy or over unexpected personal developments such as job losses and medical expenses. The events of late 2008 should be making it clear to all of us that our financial health is not usually a function of whether we are good or bad persons.

You can pick and choose what to put into bankruptcy. Continue reading ‘Bankruptcy Myths’ »

Many of the people who call to an experienced Washington bankruptcy attorney to learn more about how the bankruptcy laws can protect them are also extremely concerned about their credit rating. This can be a complicated issue, and it is one that law offices invite potential clients to discuss candidly with one of their Washington bankruptcy lawyers.

A lot of peoples have spent many years, if not decades, building up their credit scores. In difficult economic times, however, it is very tough to maintain a good credit score once you start consistently falling behind 30 days or more on various accounts. Some of people struggle for a long time to try and stay as current as possible. In talking with them in detail, however, it is apparent that they are merely treading water.

Their creditors harass and annoy them for anything they get. But it is never enough. More importantly, even if your creditor claims that they are willing to work with you, they are also probably simultaneously destroying your credit score by reporting multiple late payments. It is a vicious cycle that Washington bankruptcy attorneys have seen time and time again.

Again, this is complicated issue that is also very fact specific. In most cases, and despite what the credit card companies would have you believe, filing for bankruptcy actually improves your credit because the balances on your outstanding debts are discharged (wiped out) and your debt-to-income ratios drop. Continue reading ‘Effect of Filing For Bankruptcy to Your Credit’ »

If you are filing for bankruptcy, then the simple fact of the matter is that you are doin so because your finances are so poor that you have no choice. After all, it isn’t like you are filing for bankruptcy for fun and games! It is natural then that you would want to avoid further debts or bills of any sort.

It is often for that reason that so many people filing for bankruptcy ask about the possibility of going it alone, without the services of an attorney. Often these people have been advised by friends and family that it is possible, they sometimes know someone who has done it themselves successfully.

Continue reading ‘Filing For Bankruptcy – Important Factors to Know Even Before You Consider to Proceed’ »

If you are considering filing for bankruptcy you might have previously been too embarrassed to ask for help or advice. Unfortunately, bankruptcy still has something of a social stigma attached to it, particularly amongst the older generations and people simply do not like to talk about topics with a stigma attached. This means that a number of people are misinformed about certain facts relating to filing for bankruptcy.

First of all, increasing numbers of people seem to believe that the changes brought about in 2005 when Congress overhauled the bankruptcy code simply mean that most people are now finding it impossible when filing for bankruptcy. This is not the case. While it is true that the changes of 2005 made the whole process a lot more complicated than it previously was, most who were eligible before the changes still are. And bankruptcy is a very legitimate and viable way for hard to do Americans to get a clean slate. Continue reading ‘Do Not Be Misinformed If You Are Filing For Bankruptcy – Get the Right Facts Before You Proceed!’ »