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How Will My Life be Affected by Bankruptcy?

Last updated 2 years ago

 Even if you’re forced to file bankruptcy, it’s not the end of the world. In fact, you could end up a lot better off afterwards. Here’s a quick look at how your life may be affected by bankruptcy

Debt

If you’re currently in debt, or have been in debt in the past, you know how mind-numbingly stressful it be. Calls from creditors, threats of foreclosure, and pending lawsuits are enough to give anyone a panic attack. When you file for bankruptcy, however, you can either have much of your debt immediately erased via Chapter 7 bankruptcy, or opt to slowly pay back your outstanding debts through Chapter 13 bankruptcy. Either way, you’ll end up with a significant weight lifted from your shoulders.

Credit Score

Unfortunately, filing for bankruptcy will negatively affect your credit score. A Chapter 7 bankruptcy will remain on your credit score for ten years, while a Chapter 13 bankruptcy will remain for seven. When landlords and lenders see a bankruptcy on your report, they’ll likely be more hesitant to grant your requests. However, rebuilding your credit after bankruptcy isn’t as hard as you might think. Also, filing for bankruptcy is still better than accumulating more debt.

Personal Life

The only ones who know about your bankruptcy will be your creditors, your lawyer, and the reporting agencies. If you’re embarrassed by your bankruptcy, you can always keep it to yourself. Though your bankruptcy will become public record, someone will have to be actively looking for it in order to find it.

If you have any questions about life before, during, and after the bankruptcy process, contact Golden State Law Group. Our lawyers have several decades of combined experience in handling bankruptcies. Call us today at (619) 234-3333 to set up a free consultation.  

 

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