Starting Over After Bankruptcy

People often ask how the filing of a bankruptcy will impact their credit rating and their ability to borrow in the future. Filing for bankruptcy is not the end of the road -- it is a new beginning. Many people suffer from the belief that once they file for bankruptcy it will completely ruin their credit and they will be blacklisted from any kind of loan for the next 7 years. Our personal experience is that this simply is not true. In most cases, people seeking to file bankruptcy have already damaged their credit rating or have simply maintained a good standing with their creditors by using one credit card to pay another. This practice usually serves as little more than a delay tactic, creating a larger financial problem down the road.

Most people can re- establish their credit after bankruptcy by maintaining employment and by promptly making payments on accounts they elect to keep such as car payments, mortgage payments, rent, insurance and utility payments. Additionally, Federal law forbids discrimination against people who have filed for bankruptcy.