Bankruptcy doesn’t hurt your credit. It doesn’t matter how I explain this, my clients never believe me. Congress crafted Bankruptcy to be a way for consumers to get a “Fresh Start”. The words “Fresh Start” are actually mentioned in code and case law. If you have bad credit, then Bankruptcy could be the way for you to quickly improve your credit score!
You can borrow money in some cases almost immediately at lower interest rates. Most of my clients come in with the assumption that they cannot borrow money for 3 to 10 years! This is not the case. I have clients get credit card offers right after completing their case. I do not recommend they take those offers, but the opportunity is there.
You can let your home go without getting taxed. From 2008 to 2014 there was a special tax provision allowing homeowners who could no longer pay for their home to let their home go back without the monies borrowed being considered income. This provision has now expired. This is a big deal for someone who is already in dire financial straits. The IRS will tax you at whatever your tax bracket is.
Medical Debts can be discharged in Bankruptcy. In almost every case I file there are medical debts. Medical debts are treated no differently than credit cards. They will be wiped clean from your credit report upon the completion of your Bankruptcy.
Debts with personal property pledged are discharged in Bankruptcy. More and more often I see debts owed to Springleaf Financial, Basic Finance, Mariner Finance etc. These companies use items of personal property as collateral. The Bankruptcy Code provides for the avoidance of the liens on your personal property. This means you can wipe out the debt owed to these companies (and their 30% interest rate) and keep your property. If you have a loan with any of the above mentioned companies, you need to file bankruptcy.
Let's get started on your journey to Financial Stability. I have been helping consumers in Wilkes, Surry, Yadkin, and Alleghany Counties file for bankruptcy for nearly 15 years. Helping relieve the financial burden debt brings is my life’s work. If you are ready to help yourself and your family build a better life, contact me today.