How to Build Your Credit and Be Debt Free
If you are like most Americans, you may have a negative connotation associated with the word “bankruptcy.” The word can conjure up ideas of debt and credit destruction that cannot be repaired; however, this misconception could not be further from the truth. When you file for bankruptcy, you can actually enable yourself to become debt-free and work toward rebuilding your credit and securing your financial future.
Many potential clients mistakenly believe that their credit will be ruined if they file for bankruptcy. The truth is that many debtors can actually benefit from filing for bankruptcy. Most debtors’ credit scores are reduced by creditors for non-payment of debt or late payments on their bills. In addition, the large amounts of debt that debtors often carry depress their credit scores.
Moving Forward After Filing for Bankruptcy
Once a client files for bankruptcy, however, they can become free from unsecured debt, such as credit cards and medical bills. The client then cannot discharge future debt in a subsequent Chapter 7 bankruptcy for another eight years. Clients who have recently filed for bankruptcy are, therefore, better credit risks going forward because they have almost no other debts and cannot discharge future debts for several years. These circumstances can help you rebuild your credit more easily.
Some of the advantages you might gain after filing for bankruptcy:
- The automatic stay will bar creditors from contacting you to try and collect debts, possess your vehicle, or file lawsuits against you.
- You can be relieved from paying certain debts if they qualify as a dischargeable debt.
- There may be some bankruptcy exemptions that will allow you to keep your home.
- Because of the fresh financial start, you might immediately be able to begin rebuilding your credit.
Remember that the outcome of your particular situation will be unique only to you, depending on the number and types of debts you have and what assets or properties you wish to retain. It is important that you consult first with a knowledgeable Long Beach credit repair attorney at Leibowitz Law Group first to help you with the Chapter 7 bankruptcy filing process and ensure that all of your rights are protected.
Learn How to Become Debt Free Today
When you work with Leibowitz Law Group, you can be sure that your case is being handled by experienced and dedicated professionals who have a vast knowledge of the federal bankruptcy laws and California regulations governing debt. We strive to provide personalized representation to each client who retains our firm.
For more information about how we can help you become debt-free and rebuild your credit score, contact Leibowitz Law Group today!