Are you among the many people here in Nashville and across the country who believe that filing for bankruptcy could ruin your chances of ever receiving credit again? Do you think your credit rating will never recover?
These are definitely legitimate questions. After all, everyone cautions you not to file for bankruptcy, so there must be a good reason. Fortunately, for you and others who need some relief from overwhelming debt, bankruptcy could actually make your life better.
There is life after bankruptcy
Yes, your credit score will take a hit when you file bankruptcy, but it doesn’t last forever. In addition, it stops the downward spiral your credit score was probably already on since you were unable to pay your bills. All those creditor calls, letters and other communications tend to translate into your credit score dropping rapidly. Once you file, that usually stops. In addition, you can begin to rebuild your credit and take advantage of the following:
- You can start to build savings since you are no longer spending money on the debts discharged in a successful bankruptcy.
- If you take full advantage of the fresh financial start bankruptcy provides you, rebuilding your credit score may not take as long as you think.
- You may be surprised at how quickly you begin to receive offers for credit cards after filing bankruptcy. As long as you continue to be smart with any card you receive, you can start to rebuild your credit.
- You can still obtain an auto loan, but you may pay more in interest than you would otherwise.
- If you like to travel, you could do some research to find a credit card company that offers miles and will extend credit to you. You can earn miles by only charging amounts you would ordinarily pay cash for and then pay off the balance right away.
- Student loans are not ordinarily discharged in bankruptcy, but you may find it easier to make the payments after filing.
As you can see, life does go on after filing for bankruptcy. You may need to wait a longer period of time in order to obtain the credit you need, but the more time that passes and the more you rebuild your credit wisely, the more opportunities you will have in the future.
Bankruptcy might not be the best option for everyone, however. If you want to know whether it would work best for your situation, you would be wise to sit down with an attorney to determine the course of action that works best to resolve your debt issues.