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Is Bankruptcy A Fresh Start? | Missouri Bankruptcy Lawyer

After weeks, months, or years of fielding calls from creditors, facing repossessions, fearing foreclosure, and receiving mountains of past-due notices, you may wonder: how much of a fresh start is bankruptcy? Will it wipe the slate clean and give me a second chance?

The answer, unfortunately, is not a simple "yes" or "no". Bankruptcy will stop the phone from ringing and stop the letters from coming. Chapter 7 bankruptcy will give you a chance to liquidate you assets to pay off some debts and have other debts forgiven. Chapter 13 bankruptcy will give you a chance to reorganize your debts and create a plan to catch up on payments. Both types of personal bankruptcy will give you a chance to reestablish your credit and move on with your life.

However, declaring bankruptcy is not a magic bullet or a cure-all. After declaring bankruptcy, you must take financial responsibility and learn how to rebuild your credit. Your bankruptcy will stay on your credit report and affect your credit score even if you settle your debts. In addition, declaring bankruptcy will make it difficult to make big ticket purchases (such as a house or a car) for at least a few years after you file.

In the end, bankruptcy is a serious decision that is right for some people and not right for others. To learn more about whether bankruptcy is the right choice for you and your financial situation, the best thing to do is talk to an experienced bankruptcy lawyer. Contact us today for more information.

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