Is there still a stigma attached to bankruptcy?

If you’re like many Tennessee residents who are considering filing for Chapter 7 bankruptcy, you may be hesitant to take the steps, believing that there is a stigma attached to the event. It’s true that in decades past, there was more bias against those who had gone through a bankruptcy, but times are different now. The years during and following the recession hit many people hard, and countless people had to resort to bankruptcy to get back on their feet.

As a result, a number of banks and lenders don’t view consumers post-bankruptcy with as much judgment as before. In fact, states Fox Business, after going through bankruptcy you are more likely to receive offers for new credit than those who are still struggling to repay their debts.

The future can look brighter after bankruptcy than you might believe possible. After a Chapter 7 bankruptcy, your credit score should start to recover faster than that of insolvent people who do not opt for bankruptcy. In about a year with good financial habits, you should start to become eligible for better rates on auto financing. A couple years after that, you may be able to get a home mortgage.

Some people still believe that personal bankruptcy is an option only for those who want to escape responsibility and get something for free. However, it is not always possible to recover from serious financial setbacks without help. You may find it encouraging to know that the stigma of bankruptcy is far less than what it used to be, and you are likely to recover just fine. This information should not substitute for the advice of a bankruptcy lawyer.

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