For Many, Filing Bankruptcy is the First Step in Turning Your Financial Affairs Around
Since 1990, I have helped hundreds of people throughout Boston and Massachusetts file for bankruptcy. Two of those clients were a husband and wife who each owned businesses in Boston: he owned a men's clothing store and she owned a women's clothing store. Both businesses suffered a downturn and their landlord would not work with them. Although their businesses were incorporated, these individuals were personally liable for many of their business debts, including the leases on their stores. I represented both of them in the filing of their Chapter 7 bankruptcy case.
One year later, these people informed me that filing for bankruptcy was the best decision they ever made. They told me they were selling their home and moving to Florida to get a fresh start. Stories like these keep me practicing bankruptcy law. Bankruptcy really does allow a person with serious financial difficulties to start over. You will be unburdened by all (or most) of the debt you once had, allowing you to get a fresh start.
Rebuilding Your Credit After Bankruptcy
While filing bankruptcy is not good for your credit, filing bankruptcy may also be the first step in rebuilding your credit. If your credit cards are "maxed out" and you are facing wage garnishments, repossessions, legal actions and harassing phone calls and letters from debt collection agencies, your credit score is probably already impaired.
A bankruptcy filing will remain on your credit report for seven to ten years. However, often within a few months of discharge you can start rehabilitating your credit, provided you have sufficient regular income. Within a few years, you may be able to get a mortgage on a home.
Credit Cards After Bankruptcy
Many people who have received a discharge of their debts in bankruptcy may be hesitant to use credit cards. However, prudent use of a credit card following a bankruptcy can help you to improve your credit score. You can do that by obtaining a credit card that is backed by cash deposits, or a secured credit card. After making regular payments on that credit card for a period of time, you may be able to change it to an unsecured or regular credit card.
After obtaining a bankruptcy discharge, you will not be eligible for another Chapter 7 bankruptcy for eight years. For some creditors, this actually makes you a better risk, since bankruptcy is no longer an option.
Free Consultation With a Bankruptcy Attorney
To discuss bankruptcy and your credit with an experienced and compassionate bankruptcy lawyer, call 866-959-9065 or fill out the contact form on this Web Site to schedule your free initial consultation. My Boston office is conveniently located downtown and is accessible by all T lines. I also offer appointments at meeting locations throughout the Greater Boston, Metro West and North Shore areas to better serve you.