With a huge number of people filing bankruptcy these days, the question that debtors face before filing, ? This is an age old question since bankruptcy began. Being worried about what happens to your credit after filing bankruptcy is kind of stupid when you really think about it. Considering the formula of how credit reporting agencies come to their rankings, late pays and debt ratios weigh a lot heavier than a bankruptcy. When a person comes to the place that filing bankruptcy is their only way out, their credit cards are probably tapped out and they haven’t been able to pay their bills for awhile. Although, your credit will have a big red mark on it for 10 years, many creditors or more willing to take a risk on an individual post bankruptcy filing rather than someone that is tapped out and struggling to make ends meet..
Filing bankruptcy under Chapter 7 will give a person that is buried in debt the relief they need. Congress created bankruptcy with the intent of giving good people a second chance and a fresh start. It’s hard for an individual to even think clear when you’re living paycheck to paycheck. Removing this stress will help a debtor be able to focus on things that are important. Bankruptcy is a powerful tool when all its benefits are exercised. When an individual files for bankruptcy the automatic stay goes in place stopping creditors from harassing the debtors. In fact, they’re not even allowed to contact the debtor in any way. This quiet time allows the debtor to reassess their life and consider what’s really important. The debtor, along with their bankruptcy attorney, will be able to decide what property they should keep and what they should let go. This whole process can be psychologically freeing. Getting back to what’s really important in life, putting family first and the stuff last.