Bankruptcy is a life-changing decision that can be incredibly advantageous for those who are struggling financially. Filing for Chapter 7 or Chapter 13 bankruptcy can help a person caught in a difficult situation by eliminating specific debts, giving them a chance to get their finances back on track. While bankruptcy has many benefits, it does have certain effects on a person’s financial future.
Bankruptcy filings are available to the public. This means that court documents will come up during credit searches or similar checks. However, most background checks cover your criminal records, not your financial record. In most cases, the public, or even potential employers, don’t actually care to look at your bankruptcy records.
How Bankruptcy Can Affect Your Future
There are a lot of myths surrounding bankruptcy. The process is designed to help people who are struggling with debt. It was not created to punish people. It will affect you temporarily. You may have a problem getting a loan or credit card for a long time. However, your bankruptcy will have less of an effect on you as time goes on. You can work to boost your credit score during this time.
Lenders and creditors will look at your credit report to determine whether you will be approved. A bankruptcy can stay on your report for up to 10 years. Your credit score will get better throughout this period if you continue to stay out of debt, and you will eventually get approved by creditors again.
A Fresh Start Financially
There are other concerns that people focus on while they are deciding whether to take the next step and file.
Many people are embarrassed to have to file for bankruptcy. For others, disclosing finances is difficult. Keep in mind that bankruptcy is basically a service that is provided to help make sure that citizens can survive a financial disaster.
It should be recognized that financial records are not really an interest to anyone except credit card companies. The only time that a creditor will look at your credit report is when you are interested in taking out a loan or credit card.
Deferring bankruptcy because you’re worried about who can view your financial records can just cause more setbacks. Filing for bankruptcy can ease some of the stress that comes with overwhelming debt. You will be able to make payments on your debt and save your property and assets, which is a positive thing. Once you file, you can turn your attention solely to creating a better financial future for yourself.
The Louisiana bankruptcy attorneys at E. Orum Young Law Offices can help put your financial worries to rest. We have filed over 20,000 bankruptcies in Northeast Louisiana and can put our extensive legal knowledge to work for you. Contact us today for a free case evaluation. Our Trial Guarantee ensures that we’ll take your case to trial per your request.