Bankruptcy will affect nearly every aspect of your life. In some ways it will be positive, others not so much. Because bankruptcy is such a major financial decision, it is important to consider all other options for debt relief before you turn to bankruptcy. You should contact a bankruptcy attorney to find out if bankruptcy is your only option. If you are thinking about filing for bankruptcy, you are probably very worried about how your credit score will be affected. You will find that post bankruptcy credit will be poor, but there are several things you can do to protect your credit as much as possible. Contact Bankruptcy Lawyers to help you first determine if filing is your only option.
There are several different Chapters of bankruptcy and how badly your score is initially effected will depend on which chapter you file. There are both liquidation and repayment types of bankruptcy. For example, with Chapter 13 bankruptcy you will have paid off some of your debt and continued making mortgage and car payments throughout the bankruptcy process. Since you repaid some of your debt and only discharged a portion, this type will affect your credit less than a Chapter 7 liquidation bankruptcy. Only bankruptcy law firms can determine which Chapter will best suit your situation.
You need to be honest with yourself about your financial situation and how you came to file bankruptcy. While no one can predict large medical bills or job loss, you need to figure out if there was anything you could have done to prevent it. Did you ignore early warning signs, did you spend more than you should have even after having trouble paying bills. Bankruptcy is a very difficult process you do not want to repeat. It also provides you with a clean financial slate. It is important to address the issues that led you there in the first place so that you can avoid falling into the same pattern.
Even if you are not filing for bankruptcy, keeping an eye on your credit score is always a good idea. Regular checkups on your score can mean catch identity theft early on, before irreversible damage to your credit score has been done. But after you file for bankruptcy you should check your credit report to make sure that any debts discharged during your bankruptcy are not still being reported as open accounts. They should be listed as “included in bankruptcy”. There are several places to get free credit reports, so do not think you have to pay for your report. If you are trying to rebuild your credit, it is important to become familiar with your credit report and understand how your credit score can be affected.
If you are in Florida and think that bankruptcy might be the only way out of overwhelming debt, contact a lawyer experienced with bankruptcy in Miami that can advise you on your next steps.