When you find yourself in the terrible position of overwhelming debt, you may feel trapped and paralyzed. You don’t have enough resources to pay off your creditors, you’ve maxed out your credit cards, and you’ve taken on terrible new loans to pay off older loans. You know you need relief, but somehow, you’ve been led to believe that bankruptcy is too extreme a measure to even consider.
You are not alone. We encounter far too many people who hold misconceptions about bankruptcy. One of these misconceptions is that obtaining bankruptcy relief will ruin your credit forever-and that you will never be able to borrow again.
The Effects of Bankruptcy Do Not Last Forever
First, bankruptcy remains on your credit report for up to ten years. This means that your credit score will likely take a serious hit, which will significantly hinder your ability to obtain credit without paying high interest rates. However, consider the following:
1. Continuing on your current course is not going to improve your credit. You can only qualify for bankruptcy relief if you can demonstrate that you actually need the relief. This means that you have more debt than you can handle and your credit score is already unfavorable. Unless you come into some money or get a significant raise, your debt problems and credit score are only going to worsen over time unless you seek relief.
2. Chapter 7 bankruptcy-in which your eligible assets are surrendered to a trustee to satisfy creditors-is a relatively short process. In fact, barring unusual challenges or circumstances, it can take as few as three to six months to obtain a bankruptcy discharge. This means that you get quick relief from your debt and creditor harassment, and are free to start working toward a more fulfilling financial future.
3. Many people obtain credit in far less than ten years. Even though the bankruptcy remains on your credit report for up to ten years, many of our clients obtain car loans and new credit cards much sooner. New credit will increase your credit score and minimize the effects of the bankruptcy on your credit report.
You Need an Attorney to Defend Your Legal Rights
Bankruptcy is a measure of last resort, but it is also a source of hope. It provides hope by fending off aggressive creditors and ending many of your debt obligations, leaving you free to focus on a better future. If you are interested in debt relief, call us. For thirty years, the attorneys at Levitt & Slafkes, P.C., have helped clients successfully navigate the bankruptcy process. With our knowledge of the law and our passion for helping people seek relief, we can help you. Contact our office by telephone at (973) 323-2953 to schedule a consultation, or contact us online.