How Will Bankruptcy Affect My Future?
If you are facing serious debt, you might be thinking about filing for bankruptcy. Before you determine if bankruptcy is the right option for you, it’s important to understand how it may affect you in the future. To help you know what it means to file for bankruptcy, the Southern California bankruptcy attorneys at Wadhwani & Shanfeld have put together everything you need to know about how bankruptcy may affect your future.
If you have more questions about bankruptcy or need further guidance, our team is here to help you. With over 65 years of collective experience, our team has the knowledge, experience, and skills needed to help you obtain financial freedom. We have successfully helped over 20,000 people get back on their feet after a financial crisis. We are available to speak with you via phone, video chat, or email.
Get in touch with our Los Angeles bankruptcy lawyers today at (800) 996-9932 to schedule a video chat or phone consultation!
Bankruptcy Puts an End to Creditor Harassment & Collection Activities
Bankruptcy can be a valuable solution for many people who are facing worrisome debt. It stops most collection actions, including phone calls and lawsuits. Depending on the chapter you file (Chapter 7 or Chapter 13), some of your debt may be eliminated. Bankruptcy often eliminates debt like credit card balances, medical bills, personal loans, student loans, and more.
So, if you are tired of not being able to pay off your debts and deal with creditor harassments, filing for bankruptcy may be a good option for you. However, it’s important to understand that bankruptcy doesn’t stop all creditors, and it doesn’t wipe out all debt obligations. If you aren’t sure which of your debts are dischargeable, you should seek the guidance of an experienced bankruptcy attorney. Our legal team is ready to analyze your case and help you determine which of your debts can be discharged by bankruptcy.
Bankruptcy Can Stop a Foreclosure or Eviction
Bankruptcy’s automatic stay can temporarily stop foreclosures, repossessions, or evictions. An eviction will be paused after a bankruptcy filing, even if it’s in the litigation process. However, it might not help people who already have an eviction judgment.
If you file for Chapter 7 bankruptcy, it will put a hold on your foreclosure, but it is possible that you won’t get to keep your property. However, if you file for Chapter 13 bankruptcy, there is a possibility that you can keep your home.
Bankruptcy Can Discharge Unsecured Debts
Bankruptcy can help people wipe out unsecured debts. Debt is considered unsecured if you didn’t promise to give back the purchased property if you didn’t pay the bill. In most cases, medical bills, credit card debt, utility payments, personal loans, and many others are considered unsecured debt.
If you file for Chapter 7 bankruptcy, it will take an average of three to four months to discharge your debts. If you file for Chapter 13 bankruptcy, you will be given a three to five-year repayment plan that is tailored to your ability to pay. After your repayment plan ends, any unsecured debt that remains will be discharged.
Bankruptcy Can Impact Your Credit
It’s important to understand that bankruptcy can impact your credit score for up to 10 years. Although bankruptcy may be visible to lenders on your credit report, it doesn’t necessarily mean that it will hurt your credit score if your credit score is already low from debt. With a low credit score due to your overwhelming amount of debt, bankruptcy won’t necessarily affect you more than your current situation.
The good news is that your credit score can gradually heal if you take the right steps. Although bankruptcy will remain on your credit score, there are still different steps you can take to help you improve your credit score overall. By having your debt discharged with bankruptcy, you may be able to have a fresh start to rebuild your credit score.
Getting a Credit Card or Loan After Bankruptcy
It’s still possible for you to obtain a credit card or a loan after filing bankruptcy. However, lenders will be more cautious and will likely give you higher interest rates. It’s important to take the right steps after bankruptcy to prevent accumulating more debt with high-interest rates. Taking caution with new credit cards and loans will help you rebuild your credit score.
Call Our Southern California Bankruptcy Attorneys Today!
Bankruptcy has helped many people rebuild their lives after dealing with overwhelming debt. If you’re worried about how bankruptcy will affect your future, it’s best to consult with an experienced bankruptcy attorney to understand how bankruptcy may affect you.
The Southern California bankruptcy attorneys at Wadhwani & Shanfeld have over 65 years of experience helping people obtain financial freedom. Our team can review your case and determine if bankruptcy is the best option for you. If we determine that it is, we can discover if Chapter 7 or Chapter 13 is best suited for your unique situation. Our team is ready to help you overcome the stress of paying off debt and creditor harassment.
Why choose Wadhwani & Shanfeld:
- Invaluable bankruptcy insight
- Hands-on guidance
- Over 65 years of combined experience
- Helped more than 20,000 clients
- Provide virtual consultations via phone, video chat, and email
Schedule virtual consultation with our Los Angeles bankruptcy lawyers today at (800) 996-9932 or fill out an online form!