A Bankruptcy Lawyer’s Blog

Bankruptcy is a New Financial Start to Build Credit, Not the Shameful End All it Used to Be

When a person is young, they are vibrant and indestructible. Nothing can keep them down. Inexperience is what contributes to this myth. As this person gains more experience, time tempers the myth and belief that every aspect of the world is awaiting them to discover and conquer. Thoughts turn from the present to that of what the future holds.

Hindsight being what it is, if the average 22 year old had only financially planned for the future instead of just focusing in on the present, the future would be much brighter. Instead, the average middle aged man or woman is finding themselves jockeying debts and living from paycheck to paycheck with little relief in sight.

With mounting credit card debts, car payments, the expense of raising children, and a sizable death pledge, also commonly referred to as a mortgage, most of the country has not experienced this much financial stress in over 50 years. Bankruptcy then was an extreme taboo. To declare bankruptcy then was completely ruinous and few if any ever recovered. Fortunately today, that same stigma of absolute failure and worthlessness has been replaced with understanding, but tempered with caution. A bankruptcy will stay listed on a person’s credit report for 7 to 10 years depending on the type of bankruptcy declared. In other countries such as Britain or Australia, the period is a shorter 6 years and 7 years respectively.

It is still a very realistic expectation to succeed and prosper after claiming bankruptcy, however, the majority will find it challenging to adhere to a disciplined financial regimen where once the youthful carefree approach reigned supreme. Very few individuals or families can do this alone without some financial advisor or planning.

A large number of financial advisors will say to pay off enormous debts through debt consolidation and loan counseling assistance. Depending upon the type of debt and amount, it may not be a logical or realistic endeavour. Reputable bankruptcy attorneys also may recommend paying off one’s debt if possible.

If an individual or family has been struggling with making on time payments only to keep edging further and further into late fees for a year or more, bankruptcy may be a recommended alternative in order to preserve ownership of any vehicles and home from repossession and foreclosure. They key phrase to recognize is bankruptcy protection. The complexities of filing for bankruptcy should never be attempted without a qualified attorney which specializes in bankruptcy cases. By consulting and hiring an attorney, an individual or family stands the best chance to return to a normal and prosperous life in the near future.

For more information and guidance about debt recovery, foreclosure avoidance, and bankruptcy protection, visit http://www.KanzerLaw.com Among other professionals, Kanzer Law specializes in helping individuals protect their assets from creditors during times of personal economic crisis.

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