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Bankruptcy is poorly perceived everywhere, including in Florida, but some of that bad reputation is simply due to a lack of understanding. This article aims to clear up some of the most common myths, misconceptions, and misunderstandings Florida residents have about the bankruptcy process, including:
False. There may have been a time in this world when that was true, but today, it is almost the opposite. In our experience, clients actually get offered loans during or after their bankruptcy, including credit card offers and financing offers. Because you cannot file again right away, those are considered safe debts.
You can even get a mortgage eventually, maybe not right away, but just two or three years after the case is closed, clients can easily get mortgages, especially if you take the time to responsibly rebuild your credit.
False. Although the bankruptcy is going to be on your credit report for a decade, you can still get your score back up to 700 or above. It may take time, even five years. But it does not mean that you cannot get a good credit score for the whole 10 years.
When people check your credit, it will be listed there for 10 years, however, so it can be used to affect an interest rate or something along those lines. Maybe your credit score won’t get to the perfect number, but most of us would be happy to get 650 and above, and you certainly can.
Chances are you will be able to improve it much faster after bankruptcy than while struggling to deal with all those debts.
False. Unless every debt you have is one your spouse shares. But even then, if he or she is paying the payments, then their credit will not be affected.
People automatically assume that their spouse is screwed if they are married and file for bankruptcy, even if they are not filing the bankruptcy with them. But in truth, your spouse’s credit should not be affected at all.
If it is, you can contact an attorney who can fix credit reports, and they will probably get that cleared up right away. After all, there is no reason it should be affected by a spouse’s filing.
Attorney Alec Solomita is a kind and experienced bankruptcy lawyer based in central Florida. He has helped countless clients struggling with debt to find a fresh start through bankruptcy. He has heard just about every myth and misconception there is and wants to make sure readers get the real picture so they can make financial decisions from a place of knowledge, not fear.
Ready to put your debts behind you? Still have questions or concerns? Contact Solomita Law today to schedule an initial consultation.
There might be some companies or government agencies in which filing bankruptcy could prohibit you from getting the job. But this is probably not as frequent or big a factor as most people assume.
Yes. A bankruptcy will show up on a background check. But unless you are working in finance or something with security clearances, it is unlikely to be held against you. Even then, plenty of people in both types of jobs have been able to file bankruptcy and keep their jobs or get other jobs.
So, while you should be careful depending on your field, in most cases, it will not be a factor.
If you are even contemplating bankruptcy, chances are your credit is probably not great right now anyway. Once it is at a certain point, you are not going to improve it very quickly, but at least a bankruptcy will give you the chance to improve it.
Either way, your credit score will not be low forever. Even if you have a 700 score now, and it will hit your credit really hard, it will only be like that for a few years if you file bankruptcy, certainly not a lifetime.
For the vast majority of people who file for bankruptcy, it changes their lives for the better.
I had a client in debt up to their eyeballs and could not even pay their mortgage. A couple of years after the bankruptcy, they emailed me to check in, saying how great they were doing. Their credit score was 700 something, and they had gotten a house and were ecstatic about it.
Most people never think, even after I tell them, that they will get back to where they were prior to bankruptcy, and yet they end up there or better in just a few short years. I am always proud of them, especially when they stay in touch to say how great things are going.
Sometimes, you also get a client who comes back saying things are not so great, though rarely through any fault of their own. I just had a client call who filed for bankruptcy four and a half years ago. Some bad luck and unfortunate financial situations had him worried, and since he cannot file again for Chapter 7, we are talking about a possible Chapter 13.
Bankruptcy is not a financial death sentence that people sometimes think it is or that the media sometimes portrays it to be. Most people will rebound from the first bankruptcy. In fact, drowning in debt is much more likely to kill you, and bankruptcy just puts you back in a position where you can dig yourself out and start over again.
For more information on Chapter 7 Bankruptcy Will Ruin Your Life Forever, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (407) 305-5599 today.
Attorney Alec Solomita is a kind and experienced bankruptcy lawyer based in central Florida. He has helped countless clients struggling with debt to find a fresh start through bankruptcy. He has heard just about every myth and misconception there is and wants to make sure readers get the real picture so they can make financial decisions from a place of knowledge, not fear.
Ready to put your debts behind you? Still have questions or concerns? Contact Solomita Law today to schedule an initial consultation.
