Life After Bankruptcy
Life After Bankruptcy
The Law Office of Christopher Hewitt cares about people, and we offer financial and emotional support during your bankruptcy process. Christopher Hewitt has filed thousands of bankruptcies in Riverside and Orange Counties and understands how difficult it is for people to accept their financial and emotional situation.
What are the effects of Bankruptcy?
Filing Bankruptcy will drop your credit score. The process may cause significant stress for the debtor and their family. These are the primary reasons why people try to avoid it. If you have an excellent credit score, it will drop by about 200 points, affecting your ability to get credit in the “near” future. Many of my clients already have low credit scores or have missed mortgage payments, credit card payments, judgments, and other things affecting their scores. Don’t let the fear of a low score stop you from filing. Credit will come. If you reaffirm your home or car and keep paying on it, that will help prove you are credit-worthy. Many lenders send credit offers to recently filed bankruptcy debtors since they no longer have debt and can’t file for another eight years. After three years, I would say that I have seen clients regain credit scores in the low 700s and qualify for conventional mortgages. You need to rethink how you use credit and pay it back quicker and at higher percentages than before you file. Bankruptcy can feel like a life-altering choice, but I have found that it is typically for the better, and a fresh start is much better than sitting in the quagmire of debt and not making the difficult but appropriate decisions. Companies file for Bankruptcy for the same reasons that people do, but people forget that the process is for emerging in better shape and not giving up.
Can life be normal after Bankruptcy?
Yes, your life will return to normal after Bankruptcy. Through Bankruptcy, you learn how to live within your means, and you can better manage your money than you did in the past. You will start rebuilding your credit, and life will go regular. It is taking the first step that can be the most challenging part.
Is Bankruptcy traumatic?
Our experience is that Bankruptcy can be very traumatic for some people. I have heard people crying during their 341A hearings because they were embarrassed about their situation. There is no shame in filing for Bankruptcy, and you should find an attorney you are comfortable with to share all your pertinent debts and not hold back any information.
Will my spouse be affected by my Bankruptcy?
If your spouse filed for Bankruptcy and you did not, the Bankruptcy will not directly affect you. However, the bank will consider this if you try to get a joint mortgage or loan.