The Stress of Bankruptcy

With all of the articles and newscasts lately about the high foreclosure rates in the Twin Cities, I thought I would find some relevant material about credit issues.

The Stress of Bankruptcy
By Keith Burke

The stress of not being able to pay your bills is often very overwhelming for people. But the stress of dealing with a bankruptcy is the unknown that many people find even harder to deal. The bankruptcy is a subject that not too many people talk about and therefore it makes it a mystical process that is hard for people to understand. When someone is faced with mounting bills that they know are impossible to ever overcome, bankruptcy may be their only choice.

Many people are afraid that by filing for bankruptcy, it will leave a permanent record on their credit report and followed them for years to come. It is true that bankruptcy does stay on your credit report for up to 10 years, but it usually only lasts seven years. The fact is, if you are planning on paying your bills on time after bankruptcy, you will contin

ue to grow your credit rating even with such a blemish on it. Your bankruptcy record does not have to prevent you from getting a car loan, a home loan, or any other credit after it has been discharged. Establishing new credit is encouraged after bankruptcy in dealing correctly with your new credit and will show banks and other creditors that your financial situation is in the past and you now know how to manage your money better.

Once you have decided to claim bankruptcy, it is important to inform yourself of all the applicable laws regarding bankruptcy in your state. Some of the most important things you will want to be informed of is if your home or your car will be in jeopardy during the bankruptcy court hearing. Many assets that you own can be protected when you file bankruptcy depending on the state you live in. Another important aspect of filing for bankruptcy and is to ensure that the creditors you are unable to pay will no longer be able to hassle you while the process of bankruptcy is being completed. Finding a good bankruptcy lawyer will help you with this process. Bankruptcy lawyers have a wealth of knowledge regarding the laws in your area as well as the specifics in dealing with creditors throughout the bankruptcy process.

Hiring a bankruptcy lawyer will take the stress of the situation off of your shoulders. Although the process itself is still very stressful, your bankruptcy lawyer will be able to handle all of the most stressful parts of filing for bankruptcy. Make sure to find a bankruptcy lawyer that you feel comfortable with and someone who will be able to represent you the way that you would like to be represented. You do not have to be vulnerable throughout the bankruptcy process and instead, hire a bankruptcy lawyer who will be able to take care of the process

for you.

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It is ever so important that you find someone who knows what they are doing with your bankruptcy if that’s what you decide to do. You need to go to someone who specializes in this field so that they know exactly what they are doing. This is a very hard decision to make but there are places that will help you and it will not destroy your life if you do the right way.

Beth Riegger
To find out more information on how to increase your credit score, click here.