Chapter 7 bankruptcy may be a good option for those struggling to stay afloat financially. Debts from credit card companies, mortgage payments, and student loans can really affect the financial flexibility you are capable of having. When things get truly overwhelming, even paying more than the minimum payment to your creditors doesn’t seem like it is doing anything to reduce your debt. Chapter 7 bankruptcy acts as a way to start fresh and get rid of the debt that is affecting your life.
However, with Chapter 7 bankruptcy comes several drawbacks that can affect your life down the line. Weighing the pros and cons of Chapter 7 bankruptcy is important before you decide whether Chapter 7 bankruptcy is right for you. Sometimes, the aftermath of filing for bankruptcy can be unclear but with the help of a bankruptcy lawyer, you can get the advice you need, when you need it. If you think it can be costly to obtain a lawyer, zero-down bankruptcy programs are available so you don’t have to put a penny down on upfront legal fees to get help from a professional. Contact a law firm handling chapter 7 bankruptcy in Phoenix today to talk to you about all the options you have in front of you to get debt relief.
Can I Get A Credit Card After Filing for Chapter 7 Bankruptcy?
Although it may be harder to obtain soon after your bankruptcy finalizes, you can still get a credit card after filing for Chapter 7 bankruptcy. However, your credit amount may be significantly less due to the impact a Chapter 7 bankruptcy may have on your credit card. On top of a lowered credit amount, the interest rates on your credit card may be higher than usual due to your bankruptcy. You can slowly build back your credit following Chapter 7 bankruptcy but it may require patience and flexibility.
Will Bankruptcy Affect My Credit?
If you file for Chapter 7 bankruptcy, your credit may be significantly affected. Your Chapter 7 bankruptcy may stay on your credit report for as long as ten years depending on certain circumstances. Having lower credit might affect your ability to take out substantial loans to buy a house, a vehicle, or anything else that requires a bigger loan.
Can an Attorney Help with My Chapter 7 Bankruptcy Case?
Although there are a few negative aspects to Chapter 7 bankruptcy, the positives can definitely outweigh the negatives if you find yourself struggling to keep you and your family afloat. At Israel & Gerity, PLLC, we can advise you as to which course of action can best suit you and whether you should try a different kind of bankruptcy or an entirely different debt relief option. Contact us at 602-274-4400 to schedule a free consultation in order to secure your financial future.