Bankruptcy in Indiana – a Ten-Year Retake or a Ten-Year Mistake?

September 23, 2012 1:10 pm Published by

Filing for individual bankruptcy – in Indiana or anywhere else, for that matter, has been dubbed the “10-year mistake” by some credit counseling services. Why do they call it that? The CBM Credit Education Foundation lists two main reasons:

  • When you file for bankruptcy, it stays on your credit report for up to ten years.
  • “You’ll have trouble getting any type of loan – for a car, a home, credit cards, education, personal needs, etc.

As a debt consolidation lawyer who’s offered Indiana bankruptcy help for more than twenty-five years, I don’t think of bankruptcy as a mistake at all.  Sometimes filing personal bankruptcy can be a way to FIX mistakes.  Mostly, as the American Bankruptcy Institute correctly points out, “filing for bankruptcy was unavoidable for 1.46 million individuals and 36,000 businesses.” 

Five years ago, when I first began publishing these Bankruptcy in Indiana articles, I wrote “Ten is Not the Number!” I was referring to one of the biggest and most long-standing bankruptcy myths, which is that if you file bankruptcy, your ability to borrow money will be totally gone for ten whole years. That is simply not true.  Just because the bankruptcy will be on your credit report doesn’t mean you won’t be able to get credit.

All the good bankruptcy attorneys in Indiana who work in the Zuckerberg bankruptcy law offices are agreed on one thing – the big mistake lies in believing some of the exaggerated promises you often hear from debt consolidation and debt settlement companies.  Remember, neither of these can stop creditors from suing you or going after your wages through garnishment.  In fact, sometimes a debt repayment plan program represents a much bigger negative on a credit report than bankruptcy itself!

Ironically, a report from the Consumer Bankruptcy Project reveals that not only is it possible to get credit after filing bankruptcy, it might actually prove easier than in the time leading up to the bankruptcy. How can this be, you ask?

Well, let me first remind you that everyone who is behind on bills in a big way already has credit problems. It isn't bankruptcy that "ruins" credit, it's overdue bills. Filing bankruptcy in Indiana gives you a chance for a re-take, an opportunity to make a fresh financial start.  By my lights, bankruptcy is the solution, not the problem!



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This post was written by Mark Zuckerberg

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