The stories are varied, but the problem almost always comes down to a series of events you couldn’t have predicted. The lay-off just as the economy started to slip, and just as you make a major purchase. The illness, the accident or the divorce all hard enough to endure without having the painful reality of what this will do to your credit. Bankruptcy isn’t what anyone wants, but it can help you recover financially.
Will Bankruptcy Stop the Constant Credit Agency Calls?
Since the act of filing for bankruptcy stops all actions against you by those you owe money, creditors must end the non-stop harassment once you file your documents. Creditors can’t take you to court, garnish wages, or make telephone calls. If creditors continue calling you after your bankruptcy, you can report their behavior to the Federal Trade Commission.
Who Will Know if You Declare Bankruptcy?
For many people the idea of not being able to pay their bills is humiliating, but certainly if you are in this position you aren’t alone. In a slowly recovering economy, declaring bankruptcy is a common fact of life for those attempting to move past bad points in their lives. While bankruptcy filings are public records, few people will know. Credit Bureaus will record the bankruptcy, and it remains on your record for 10 years.
Will I Lose All My Credit Cards?
Whether you lose all your cards depends largely on the creditor’s response to your filing bankruptcy. If you are listing this line of credit as part of the bankruptcy, they will cancel the card. If you make arrangements to reaffirm the debt, you should understand that the amount you owed before the bankruptcy filing will still remain. Not all credit card agencies will accept reaffirming your debt. After the filing it’s possible they will cancel your card even if you have kept the card paid up, and owe them nothing.
Will I Spend Years Without Credit?
Not having a credit card isn’t a problem for most who declare bankruptcy. Many banks offer secured credit cards. This is a good way to begin building your credit back. A creditor will let you put up a certain amount of money, such as $200 or $500 in a bank account to secure the money you spend through the card. As you reestablish your credit history, it can be possible to get a mortgage loan, or get a loan for a car. While the bankruptcy stays on your record even before the 10 years is up you will see more and more creditors interested in your business.
What is covered by Bankruptcy?
Very few debts are not covered by bankruptcy. However, child support and alimony, student loans, and debts incurred by having caused injury or death cannot be absolved through this process.
SM Law Group Can Help
If you or someone you know is thinking of filing for Bankruptcy call the attorneys of SM Law group. We will help you decide the best route for your individual situation. Call us today for a free consultation!