DISCHARGE IN BANKRUPTCY
If debts are legally valid and you simply cannot afford to pay them because your financial situation has changed since the debts were incurred, Bankruptcy Discharge may be your best debt solution to get a Fresh Start. It has always been my belief that Bankruptcy is Debt Relief for Honest People.
I have never represented anyone who "wanted" to file for Bankruptcy. They did so because due to their change in circumstances, it was simply the best and most practical debt solution for them. It was their best way to start fresh and get back on track with their lives moving forward.
Here are a few benefits of discharging debts in Bankruptcy:
- After Discharge, you no longer legally owe the Debt
- Attempts to collect discharged debts are forbidden
- You can reopen your case to sue creditor who attempt collection during your case or after discharge
- The Discharge actually heals your credit score
BANKRUPTCY HEALS YOUR CREDIT
How is this possible, you might ask. When you are behind or default on your debts, those creditors negatively report on your credit report, month after month. When you file for Bankruptcy, they must stop that negative reporting. Then, when the final Discharge is entered, combined with the absence of the negative credit reporting, your credit heals.
A LITTLE ABOUT CREDIT SCORES
In most cases, we see the credit scores of our clients go up and average of 150 points within the first year after their Bankruptcy Discharge. And it keeps going up as time goes by restoring your credit score much higher within just a few years. Most people have heard that a Bankruptcy can stay on your credit report for 10 years...and while this is true, this is not what drives your credit score. It is the absence of debt balances and negative credit reporting that drive your credit score.
While we are not encouraging our clients to incur new debt after their Bankruptcy case, most people may need to buy a house or finance a car at some point. So having a higher score a few years after a Bankruptcy is smarter than letting debt you cannot afford to pay linger for years and having no ability to make those house or car purchases.
BANKRUPTCY, PRESIDENTS AND THE CONSTITUTION
There has been a Bankruptcy provision in Article 1 of the United States Constitution since the beginning of the United States. It provides for uniform bankruptcy laws to be within the power of Congress to enact and while that law has changed at various times, the power to provide for the bankruptcy has been there since the beginning.
Four U.S. Presidents have been through Bankruptcy: Thomas Jefferson, Abraham Lincoln, Ulysses Grant and Harry Truman. The stories behind each of these great Presidents is interesting but there is a common thread between them. The Founding Fathers realized that in a capitalist based economy there will be times when a safety valve is needed to deal with the inevitable cycles of the American economy. Even these great Presidents (and they are four of our greatest, in my opinion) were not immune to the changing fortunes that can impact any American.
A DEBT SOLUTION FOR HONEST PEOPLE
I have helped many people navigate the Bankruptcy system in an effort to solve debt problems. The Bankruptcy solution is often the best solution because of its all encompassing ability to solve a multitude of debt problems. While there are many misconceptions and myths about what happens is a Bankruptcy case, I can explain the truth to you so that have the knowledge to know whether this solution is right for you.