As many Florida residents continue to struggle financially, they might be searching for debt relief options. Some of them might avoid thinking about filing for Chapter 7 bankruptcy because they are under the mistaken belief that their financial lives will never recover. The truth is that there is financial life after the proceedings are finished.
It is true that credit scores do take a hit after a bankruptcy. However, without filing, an individual’s credit score would usually only continue to get worse. Bankruptcy often stops that downward spiral. In fact, research has shown that by the time a filer receives a discharge, his or her credit score is already beginning to recover.
The bankruptcy will remain on your credit report for up to 10 years, which often means that any credit extended will be at a higher interest rate. Furthermore, credit options will most likely be limited for some time. Fortunately, however, that situation does improve with the passage of time.
In the meantime, the stress of being buried under a significant amount of debt is often relieved. After the bankruptcy is over, most people have more disposable income. For many Florida residents, the financial obstacles that are removed far outweigh the ones that come with filing.
Perhaps knowing that their finances will recover in time will encourage more people who are in financial distress to look into filing for Chapter 7 bankruptcy. If they do, they also need to understand their rights and responsibilities when filing. Furthermore, there are numerous procedural, documentation and legal requirements that need to be met as well. Therefore, it would not be advisable to attempt to go through the process alone since doing so could jeopardize the ability to receive a discharge.
Source: csmonitor.com, “Five bankruptcy myths dispelled“, Sean Pyles, June 13, 2016