Don’t Let Bankruptcy Kill Your Credit Forever

Don’t Let Bankruptcy Kill Your Credit Forever

 

Are you currently facing the prospect of having to file for bankruptcy? If so, you may well be worried that this will mean the death of your credit forever.

But this does not mean that you will never be able to apply for a loan for a new home or car. It does mean that it will take some doing to get your credit back on track. However, you should be aware that expert help is available for you to call on.

What Kind of Bankruptcy is Best for You?

There are several types of bankruptcy that you can file for. Under Chapter 7, you may not be required to pay back all of your debts. However, there is also a serious downside. You first have to prove that you have no liquidity and no disposable income.

You will also need to prove that your monthly income is currently below the median rate of your state. Finally, this bankruptcy will remain on your credit report for 10 years.

If you file Chapter 13 bankruptcy, you will ultimately be required to pay back all or at least a considerable portion of your existing debts. However, this type of bankruptcy will only remain on your credit record for 7 years. This may well be a better choice for you to make.

Contact the Loris Law Firm for More Information

If you have any additional questions or concerns about whether to file for bankruptcy, get in touch with the Loris Law Firm today. We are the leading bankruptcy attorneys in Mobile AL.

We can help you come to a decision as to whether bankruptcy is necessary. If you decide to go this route, we can help you choose the form that is right for your personal needs. Contact our firm of bankruptcy attorneys in Mobile AL to get started.