It is no secret to anyone living in New Jersey that a struggling economy has brought hard times on many families. Many consumers in New Jersey have contemplated bankruptcy as a means of addressing their crippling debt and anxiety, but fear of any impact on their credit and the stigma surrounding bankruptcy often leave some consumers unsure of how to proceed.
There are two separate issues to address here. First of all, the stigma surrounding bankruptcy is abating because in a struggling economy, many individuals were burdened with debt that grew unmanageable. According to one report, 1.2 million Americans made a financially intelligent decision to seek help and file for bankruptcy last year.
For many of these millions of individuals, an attorney helped them end creditor harassment and wage garnishment, while also stopping car repossession and home foreclosure proceedings. An attorney is also immensely beneficial in aiding consumers in New Jersey understand which chapter of bankruptcy to file under in order to best proceed confidently in the direction of a brighter financial future.
Once a consumer understands that the stigma surrounding bankruptcy several years ago is no longer at play in the same manner, the consumer often still retains apprehension about what bankruptcy will do to their credit. Bankruptcy will remain on an individual’s credit report for around seven to 10 years, but an individual can obtain credit cards and car loans fairly shortly after debts have been discharged. Additionally, in just two years, many individuals are able to obtain a loan for a house.
The important thing to consider in evaluating the impact bankruptcy will have on an individual’s credit is that many individuals contemplating bankruptcy are in the throes of foreclosure proceedings, wage garnishment or similarly stressful actions. An attorney can not only assist an individual in halting those actions, but also help the individual land on a track to ultimately improving their credit in filing for bankruptcy.
Source: Fox Business, “How to Rebuild Your Credit After Filing for Bankruptcy,” Roman Shteyn, march 5, 2013