One issue in particular that we hear from customers has to deal with the stigma related to bankruptcy. A basic characteristic of human nature is that individuals are afraid of things with which they may not be familiar. Do not count out Chapter 7 or 13 bankruptcy as an avenue until you have taken a moment to get educated on the topic. The stigma against debtors has significantly diminished over the last 20 years, and there is certainly no indication that debtors are going to be treated much less favorably the future. The truth is that the potential to reestablish your credit immediately after Chapter 7 or 13 bankruptcy is greater than it has ever been before. Chapter 7 or 13 Bankruptcy can remain on your credit report for as long as ten years, but it is possible to commence reestablishing your credit promptly.
First things first, let us explain what credit is. Credit is your capacity to borrow money. Numerous lenders determine whether or not to lend you funds by examining your debt to income ratio; how much outstanding debt you've when compared with your revenue. Remember that the reason that your credit is presently poor is simply because you have a lot of outstanding debt. Ask yourself, who would you rather loan revenue to; the person who has $20,000 in credit cards and could file Chapter 7 or 13 bankruptcy at any time, or the particular person who has currently filed Chapter 7 or 13 bankruptcy, has no remaining debt, and could not file yet another Chapter 7 or 13 bankruptcy for at least eight years.
Quite a few of our customers are in a position to purchase a car on financing the day they obtain their bankruptcy discharge. Usually you will spend a percentage point or two greater than a person with unblemished credit, but ask yourself how low of a rate of interest would you be able to get in your present situation. It is likely you will be able to finance a house within two years right after receiving a bankruptcy discharge, provided that you are able to deliver a minimum down payment and show the capability to make the monthly mortgage payment. A lot of customer debtors receive credit card solicitations inside months of receiving a bankruptcy discharge. Once you are a Louis White PLC client, you might be a client for life. We'll not desert our clients as soon as they have received their discharge in the court. This really is part of our commitment to you to bring high quality legal representation for any fair fee.
We caution you against rumors on the Chapter 7 or 13 bankruptcy stigmas that you may perhaps hear from close friends or loved ones, who may perhaps not possess the expertise of bankruptcy law necessary to give legal guidance. They could have your best interests in mind, but little understanding is really a dangerous thing. Speak with one of the knowledgeable bankruptcy attorneys at Louis White PLC to make certain what you’re hearing is the truth.