Bankruptcy law can be both complex and frustrating for non-lawyers to understand. However, you should still work through your case with your bankruptcy lawyer to make sure you understand exactly what’s happening. The Law Office of Tipton-Downie wants to share five things you may not know about filing for bankruptcy.
- A bankruptcy stays on your credit report and becomes public domain – Once you’ve filed for bankruptcy, it never leaves your credit report. (Your credit score may improve over the years, however.) Additionally, the fact that you filed for bankruptcy will become public record.
- Filing doesn’t clear your entire debt – The bankruptcy court can clear unsecured debts like credit card balances and medical bills. However, they won’t erase any debt accumulated from certain loans, such as student loans. The type of bankruptcy you file also makes a difference.
- Bankruptcy makes it harder to get a loan – Since bankruptcy makes you look like a greater risk, it will be harder for you to get loans. For example, those who’ve filed for bankruptcy may have to wait as long as four years before they can get approval for a home loan.
- Good credit card offers will become rare – You may be able to get a credit card after you file for bankruptcy, but the deals won’t be as good. Expect to pay higher interest rates and to have a smaller line of credit.
- Missing payments isn’t good – Most importantly, failing to make payments on time will hurt your case. In some instances, the court will completely dismiss your bankruptcy case if you miss a payment.
Don’t take a chance with your future. Work with a bankruptcy lawyer at the Law Office of Tipton-Downie in Vidalia, GA.