Advocating For Consumers In Bankruptcy Filings For More Than 25 Years

What is life like after Chapter 7 bankruptcy?

On Behalf of | Dec 25, 2015 | Chapter 7 Bankruptcy, Firm News

One of the reasons why many Florida residents shy away from filing for bankruptcy is the misconception that life afterward will be difficult. The credit industry tends to propagate this myth to keep people from seeking Chapter 7 bankruptcy relief. However, there is life after a discharge is issued by the court.

One concern that many people have is what will happen to their credit score. Filing will have an impact on the score, but it also stops any further decline that was occurring during the time when you were unable to pay your debts. These days, creditors also consider the fact that your cash flow has increased, and you are no longer buried under overwhelming debt.

Florida consumers may also believe that their credit will never recover after filing. Fortunately, this is simply not true. Many options are available for rebuilding credit after a bankruptcy. The biggest impact many people feel is that they must pay higher interest rates in the first years after the bankruptcy is discharged. This applies to auto loans, which you may be eligible for after a year, and you may even be able to obtain a mortgage after a couple of years.

If you are hesitating to file for Chapter 7 bankruptcy because you believe your credit will never recover, go see a bankruptcy attorney who will take the time to explain what will happen after you file based on your circumstances. A discharge can give you a clean financial slate upon which to rebuild your financial life. After a couple of years have passed, you may even feel as though the bankruptcy never had an impact on your financial life.

Our Blog