This is the second part in a series of bankruptcy myths debunked. The first myth we debunked was that everyone will know when you declare bankruptcy. The second myth to be debunked is that declaring bankruptcy will ruin your credit forever. While a bankruptcy filing can be reflected on your credit history for anywhere from five to ten years, it affords you the ability to restart your financial life and rebuild your credit history. Even though a bankruptcy filing will be reflected on your credit history, you will likely be a more attractive credit risk to future creditors because those creditors will know that they will not have to compete with your pre-existing/pre-bankruptcy filing creditors to get paid. You need to know the facts in order to make an informed decision about filing bankruptcy.
Bankruptcy is a chance to rebuild your credit
Chances are, if you are considering bankruptcy, you’re credit is already in terrible shape and you see no chance to improve your situation. The deeper your debt becomes the harder it is to find a way to dig your way out of it. This begs the question: How can declaring bankruptcy ruin your credit when your credit is already in a state of ruin? With bankruptcy relief, you have the opportunity to rebuild your finances and get the second chance you need.
You can build credit after bankruptcy
Declaring bankruptcy does not mean your ability to recover a good standing regarding credit is lost or forfeited forever. There are still ways to responsibly rebuild your credit after bankruptcy. With the financial relief bankruptcy provides, you can restructure your finances, start saving your money and building your net worth. After you have saved some money you can get a secured credit card and start demonstrating your credit worthiness. With time and diligence you can rebuild your credit.
Bankruptcy is not forever
While it is true that a bankruptcy can be reflected on your credit history for five to ten years, you will probably be more attractive credit-wise to new creditors because you will be free of the vast majority of your old creditors. A bankruptcy filing will not prevent you from demonstrating that you can again be trusted with credit. At Behm Law Group LTD, our Minnesota bankruptcy attorneys know that a second chance can help people rebuild their finances and get their lives back. If you want your life back, give the bankruptcy lawyers at Behm Law Group LTD a call.