One of the biggest and most long-standing myths is that if you file personal bankruptcy, your ability to borrow money will be totally kaput for ten whole years. Like most myths, this is a falsehood with a dab of truth mixed in. A Chapter 13 bankruptcy will show up on your credit report for ten years, true. But, just because something is included in your credit report doesn’t mean you can’t get credit. Your individual bankruptcy is just one of the many factors that will be considered in your credit score.
Let’s be honest here – you wouldn’t consider filing personal bankruptcy in the first place if your credit record were in fabulous shape. What the bankruptcy process – whether it is Chapter 7 or Chapter 13 – "buys" you is the chance to spend the next two to four years re-establishing your good credit. In fact, that’s the whole concept behind Indiana bankruptcy law! Speaking of "kaput", what can really start a person’s slide down the slope to "kaput" is doing nothing, putting off action while the debt piles up and the bill collectors call.
Believe me, what I see out there with clients who have taken the big step of talking with a bankruptcy attorney and getting started on a plan of action is the most incredible sense of relief combined with resolve. For these folks, as in Webster’s Dictionary, the word "hope" comes way before the word "kaput"!
Categorised in: Bankruptcy Indiana
This post was written by Mark Zuckerberg