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Bankruptcy Misconceptions

IT IS IMPOSSIBLE TO GET CREDIT FOR 7 TO 10 YEARS AFTER BANKRUPTCY

Actually, despite popular opinion, this statement is false. This is a misconception that has been growing in recent years in regard to bankruptcy. Although it is true that bankruptcy will appear on your credit report for ten years after filing, this does not mean you cannot achieve good credit.

In fact, in just three years time, you can potentially achieve good credit. Meaning, many clients can purchase real estate, or an automobile in the same three-year period if their credit improves. In truth, you will be receiving offers from credit card companies in the mailbox in no time at all. These offers will include secured and unsecured credit cards, generally with a low credit limit.

Oddly enough, some of these offers can even come from the same credit card company that was a creditor in your bankruptcy proceeding. It actually is encouraged to accept a credit card in order to begin to rebuild good credit.

After a year or so of paying credit card bills on time, your credit will improve, as well as the limit on the available credit accounts. Your goal should be to get back to a good credit level within three years after filing for bankruptcy.

IT IS IMPOSSIBLE TO FIX YOUR CREDIT REPORT AFTER BANKRUPTCY

Your credit report is important to you, understandably. As such, the three-year period after filing for bankruptcy is crucial. Getting you back in good standing with your creditors is a top priority.

It is an absolute must to be vigilant in keeping tabs on your credit score after filing for bankruptcy. Some of the major credit card companies will try and inflict bad marks on credit scores. They do this in hopes that it will cause debtors difficulty, forcing them to pay the bankrupt debt. Creditors can sometimes be relentless in their pursuit to make debtors pay. With a good bankruptcy attorney in your corner, creditors will be kept at arm’s length.

PEOPLE WHO FILE FOR BANKRUPTCY ARE DEEMED FISCALLY IRRESPONSIBLE

It is a growing misconception that people who file for bankruptcy are forever known as financially unstable or irresponsible. We would like to put an end to that unfortunate tale. There are many things that cause a person to fall into debt. Medical bills, long-term unemployment, childcare, divorce and running multiple households can all play a major role in a person losing total control over their finances.

As a result of these hardships, some people feel it is the right decision to file for bankruptcy. They have weighed their options, and decided that filing for bankruptcy can offer them a fresh start, free of the heavy burden which debt tends to bring.

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