If you are considering filing for bankruptcy, it is quite natural to be concerned about the toll that filing for bankruptcy will have on your personal finances going into the future. While it would be great to get out from under your mountain of debt right now, the fact that you got rid of your debt through bankruptcy does follow you around for many years after your bankruptcy has concluded.
Bankruptcy by itself does not necessarily ruin you financially – and certainly not forever. If you are responsible with money, your credit cards, and your debts after your bankruptcy proceeding has concluded, you can recover financially after filing for bankruptcy. You will need to be diligent and responsible with your money and your debts after declaring bankruptcy if you want to recover.
It is true that filing for bankruptcy does have some long-lasting negative impact on your finances. For instance, your bankruptcy will be reported to the credit agencies, so declaring bankruptcy will have a negative impact on your credit score. The record of your bankruptcy proceeding can stay on your credit history for up to ten years. Anyone who can view your credit history will see the record and know that you filed for bankruptcy.
Since the bankruptcy will show up in your financial history, it might be more difficult for you to get loans or lines of credit from banks and credit card companies after filing for bankruptcy. Creditors and banks view people who have declared bankruptcy as being more risky, and so the banks and credit card companies may be less likely to lend you money because you have a history of not repaying your debts at first. However, as time goes on, if you do the right things, you can recover.
But it is absolutely possible to recover financially after filing for bankruptcy. There are steps that you can take to help rebuild your credit, such as making all of your payments on time and in full (or even early), closing credit cards that you do not need or use, and budgeting your finances so that you can make sure that you pay all of your debts and bills every single month. The longer that you can demonstrate that you are responsible with your credit cards and your money, the faster your credit score will be able to recover.
Anyone who is considering filing for bankruptcy needs to understand the long-term negative impacts that declaring bankruptcy can have on your financial future. If you think filing for bankruptcy is right for you, please contact an experienced Michigan bankruptcy lawyer like the ones at the office of Karen E. Evangelista, PC. Our lawyer can help you weigh the benefits and disadvantages of filing for bankruptcy. Please feel free to contact us today at 248-652-7990.
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