Guiding You Toward A Brighter Financial Future

Debunking some bankruptcy myths

On Behalf of | Feb 28, 2024 | Firm News

If you are considering a Chapter 7 bankruptcy, you may dream of a future without financial hardships. Since access to credit is more of a necessity than a luxury, many filers wonder when they can obtain credit again – and if they should.

Unfortunately, the many misconceptions surrounding life after bankruptcy present a bleak glimpse of the possible future. Instead of believing in post-bankruptcy myths, get the truth and visualize an optimistic future.

Myth: New debt is entirely off-limits

While caution is vital, avoiding all debt post-bankruptcy can hinder your progress. Consider responsible options like mortgages, which often boast lower interest rates and can positively impact your credit score if managed wisely.

Myth: You cannot check your credit

You are entitled to free annual credit reports from each reporting bureau at no risk to your score. Monitoring your credit score allows you to track your progress, identify errors and adjust your financial strategy accordingly.

Myth: You will not be able to get a credit card

Credit cards issued after bankruptcy may come with higher interest rates. However, using one responsibly, making timely payments, and keeping your balance low can actually improve your score. Using new credit responsibly can help to build trust with lenders.

Continue to seek more Chapter 7 facts

With experienced legal guidance, you can learn more about Chapter 7 filings as well as clarify misconceptions about things like debt types, allowable credit options, score impacts and the nuances of Chapter 7 regulations. This can help you make informed decisions and chart a clear path towards a brighter and more secure financial future.