So, you think you might be headed for bankruptcy, and you are scared that your credit score will be ruined forever. Before you panic, not everything you have heard about bankruptcy is true. Here are a few myths about bankruptcy that could confuse you about how the process works. Myth #1: All Bankruptcy Stays on Your Credit for 10 Years This is a pretty popular myth, but it is not very accurate. Lines that say, “account included in bankruptcy”, third-party collections and Chapter 13 public record items only stay on your report for seven years. The only bankruptcy record that lasts over seven years are Chapter 7 public records. Myth #2: Bankruptcy Means Your Credit Score Drops to a Zero Let’s get the most important point out of the way first – your credit score will not drop to zero, that’s not even possible. Credit scores are designed to help…
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Many people see bankruptcy in only a negative light, but that is because several misconceptions and myths are perpetuated by our culture. In some cases, these myths can keep people from filing for bankruptcy when it could truly help resolve difficult financial situations. There is a stigma in our society about bankruptcy and the people who file it. This stigma is unfair and wrong. Many people file for bankruptcy because they are facing situations beyond their control, such as medical bills from serious illnesses, a poor economy, being laid off or divorce. Excessive medical bills are very common among bankruptcy filers. Many people who are considering filing for bankruptcy are worried their credit will be tarnished forever. There is no such thing as a “permanent” credit score, and it is possible to rebuild good credit. Taking baby steps and making small payments on time for several months can rebuild credit…
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*Credit card payments will not be accepted for bankruptcy cases, unless pre-approved by The Sader Law Firm. If you have a question about a credit card payment, please call our Office Manager at (816) 561 1818.
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