Life After Bankruptcy

Most people have serious concerns and questions about filing any kind of bankruptcy. The majority of their fears are totally unfounded. Many of the assumptions people have about bankruptcy are the result of myths and misconceptions about the bankruptcy process and its effects. The more common myths are (1) "I'm going to lose everything;" (2) "I will never be able to buy anything on credit again;" (3) "My credit score will be ruined" and (4) "Everyone will know I filed bankruptcy and think I'm a bad person." All poppycock! The U. S. Congress enacted bankruptcy law in order "to give the honest but unfortunate debtor a fresh start." Congress did not enact consumer bankruptcy laws so that you would "lose everything" and "never be able to buy anything on credit again." In fact, the truth is quite the opposite. You see, the entire U. S. economy is based on consumerism — people buying and selling things. When you are overwhelmed by debt you can't buy things and your credit rating is affected. When you can't buy things the economy suffers. It's better for everyone if you are granted a "clean slate" and given a "fresh start" free from the overwhelming debt that is keeping you from buying stuff. It's the DEBT that will cause you to "lose everything" and "never be able to buy anything on credit again!" Bankruptcy helps you to get rid of the DEBT that hurts your credit rating.

While it may seem counterintuitive to you bankruptcy can help IMPROVE your credit score almost immediately! A major component of your credit score is your "debt-to-income ratio." When you file bankruptcy you reduce and eliminate debt. Your debt-to-income ratio will skyrocket! Your credit score goes up, not down. Creditors also know this. They also know that if you filed bankruptcy you won't be doing it again for quite some time. They know if you just got rid of old debts by filing bankruptcy that you will be in a much better position to repay a new loan from them. Most of our clients are pleasantly surprised to learn that they qualify for car loans and credit card accounts almost immediately after bankruptcy. There are even auto lenders who will finance a car loan for you while your bankruptcy case is still active! There are also numerous credit card lenders who will give you a secured credit card after bankruptcy. You place a small amount in a savings account and they will give you a credit card with a limit equal to the amount you have in savings. If you use the card responsibly and make all your payments on time it won't be long before you can get them to raise your limit. Other lenders will see your good credit history after the bankruptcy. You will get well sooner than you think! Be careful…you don't want to get right back in the same situation that led to the original bankruptcy filing! As your credit score is rebuilt, it may be possible to start qualifying for prime mortgages within a couple of years if you use credit responsibly and make all of your post-bankruptcy payments on time.

Every year approximately 1.5 million individuals and married couples take advantage of the consumer bankruptcy laws in order to deal with overwhelming debt. If everyone "lost everything" and could "never buy anything on credit again" then nobody would ever file bankruptcy. Bankruptcy "exemptions" prevent the majority of bankruptcy filers from losing any of their property and a bankruptcy "discharge" gives you a "fresh start" so you CAN buy items on credit in the future. To get in touch and schedule a free initial consultation and to discuss "life after bankruptcy" call 601-948-4878 or email our lawyers.

Based in Jackson, The Pond Law Firm is a federally designated debt relief agency. Our attorneys help people file for bankruptcy relief under the Bankruptcy Code.