In the past, people were supposed to be ashamed of filing for bankruptcy. Fortunately, filing for bankruptcy has become more acceptable — especially since the recession. Unfortunately, this acceptance has not eliminated misconceptions about life after bankruptcy.
Most New Jersey residents receive a clean financial slate since most, if not all, of their debts are discharged or paid off, depending on whether a Chapter 13 or a Chapter 7 was filed. Even though your credit score will be impacted by the bankruptcy, you can recover over time. This is because creditors know that a successful bankruptcy means your debt has most likely been reduced significantly, leaving with you with a more desirable debt-to-income ratio.
After bankruptcy, credit card offers may begin to arrive in the mail on a near daily basis. Other opportunities to rebuild your credit may also be forthcoming. If you are not careful, you could easily end up back in the same financial position you were in prior to your bankruptcy. Your bankruptcy attorney can help you make smart choices that will rebuild your credit without jeopardizing your financial future.
Filing for bankruptcy can be a stressful and uncomfortable experience, but the relief that many people feel when it is over can be yours. By the time some New Jersey residents decide to file, their credit is already in a state from which there is no easy recovery. After your bankruptcy is discharged, the downward trend can stop and even be reversed by making sound decisions in the future — decisions that an experienced attorney can help you make.