If you find yourself in a financial crisis or in serious debt, filing for bankruptcy may seem like a last-resort plan. Despite common belief, filing could be one of your better options. So, don’t believe the hype; here are three myths about bankruptcy that are actually far from the truth:
Myth 1: Rebuilding a credit score after filing for bankruptcy is impossible.
The Truth: According to U.S. News, re-establishing your credit is actually an easy task after filing for bankruptcy if you have the right strategy. After you file and once your finances have stabilized, sign up for a credit and begin making regular, on-time payments. As long as you avoid making late payments, your credit score should improve.
Myth 2: For at least 10 years, there will be bankruptcy information on your credit report.
The Truth: When it comes to bankruptcy information, MSN reports that only Chapter 7 bankruptcy information remains on your public report for 10 years. Any other bankruptcy information, such as Chapter 13 bankruptcies, only show up on your public report for seven years.
Myth 3: Bankruptcy clears all previous debts.
The Truth: Filing bankruptcy does not guarantee a financial fresh start. Some types of debt, like child support or criminal restitution, cannot be voided by a bankruptcy, writes U.S. News. For this reason, it’s important to consult a lawyer and thoroughly consider your options before you decide to file.
If you are considering filing for bankruptcy in Las Vegas, consult with DeLuca & Associates. Addressing your concerns about bankruptcy with a seasoned bankruptcy lawyer in Las Vegas will help you determine the best avenue for your financial future. For more information, call (702) 252 -4673.