Debt Help and Advice

Many people who are in a position to be helped by a declaration of bankruptcy put off filing for as long as possible for fear of the stigma attached to it. The truth is, filing for bankruptcy has become more and more common, particularly in this economic climate. Contrary to what some might think, filing for bankruptcy does not automatically mean that you will be disqualified from loans or other lines of credit in the future, nor does it mean that you will lose or be unable to find a job.

Myth #1: Declaring bankruptcy disqualifies you for a mortgage.

While this is generally true in the short term, most who file find that they can qualify for loans after a few years. Your filing will remain on your credit report for 7-10 years, at which point it will disappear. Use these years to continue to rebuild your credit and your nest egg. Continuing to make any subsequent payments on time and holding a steady job may even mean that you can get a credit card or small mortgage loan before this time has elapsed.

Myth #2: Declaring bankruptcy will hurt your career.

While many companies do run a credit check on all potential employees during the interview process, a bankruptcy filing is not automatic grounds for disqualification. Often, the credit check is one of the last steps in the screening process, so you may have an established relationship with your interviewer. The best course of action is to be up front without giving too much information. Acknowledge the fact of your filing and mention any mitigating circumstances, such as the loss of a job or an illness. Most employers will not let this stand in the way of hiring the best candidate for the job.

Myth #3: You need to hire an attorney to file.

An attorney is not necessary when declaring bankruptcy. In complicated cases, their expertise can be extremely helpful in speeding the process, but individuals are welcome to file the paperwork on their own. If you will be self filing, it is absolutely essential that you make yourself aware of your bankruptcy rights.

Understanding what bankruptcy is, and what rights you have throughout the process, will help you determine whether it is the right solution for your financial situation.

There is no solution that fits everyone. Take advantage of free consultations with a bankruptcy lawyer to find out the best solution for you.

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