Your Financial Picture After Discharging Debts In A Massachusetts Bankruptcy

Individuals in financial distress who are considering filing for bankruptcy often have concerns about the effect of the bankruptcy on their future. They worry that their credit score will go down, that they won’t be able to get credit or be able to buy a new car or a house. Although these concerns are understandable, in most cases, people who file for bankruptcy in the face of debt problems end up in a better position financially immediately after the filing of the bankruptcy and into the future.

At the Law Offices of Ira C. Yellin, LLC, our Massachusetts Chapter 7 and 13 Bankruptcy attorney is experienced with bankruptcy proceedings. He helps determine if bankruptcy is the best option and is dedicated to pursuing the fullest debt relief for our clients. With a convenient Franklin office, we are readily available to assist you with your most urgent and pressing legal needs.

“Ira made a difficult ordeal for us into a smooth process that was less threatening than we had expected it to be. Everything turned out the way he had informed us from the beginning.” – A.T. and K.T., Jefferson, MA

Getting A Fresh Start In Life Through Bankruptcy

First, and most importantly, the filing of a bankruptcy allows for a “fresh start,” the main purpose behind the bankruptcy law. Because the bankruptcy serves to discharge debt, income is freed up to pay for items that benefit the family (such as new clothes, vacations, children’s activities) instead of going to creditors. The bankruptcy also serves to further relieve stress as it stops the onslaught of harassing phone calls and threats from creditors.

When facing the possibility of losing a house to foreclosure, a Chapter 13 bankruptcy may be the last (and often is the best) option available to save the house. And when it comes to finding a solution to keeping your house, the last thing you should worry about is your credit score. Losing your house to foreclosure or going through with a short sale will not only damage your credit score, but you will also no longer own your house.

Obtaining Credit After Bankruptcy

Most people who file bankruptcy are doing so because they have overwhelming debt, are behind on payments to creditors or are trying to prevent losing their house to foreclosure. In such situations, their credit scores have already been lowered due to these negative factors. So, filing for bankruptcy will often not result in a much lower credit score. In fact, it is likely that your credit score will start to increase within a year following the filing of a bankruptcy due to the elimination of debt; if you do not file for bankruptcy, the debt, and the lower credit score, will likely continue into the foreseeable future.

It is not uncommon for individuals to receive approval for credit cards shortly after the filing of a bankruptcy. Making monthly payments on time for mortgages, car loans, credit cards, etc. can help re-establish one’s credit worthiness even faster. If you keep your finances in order after getting debt relief from the bankruptcy filing, not only will your credit score continue to rise but you will also be in a position to obtain approval for a mortgage loan.

Explore Your Options For A Better Financial Future

For more information or to schedule a free initial consultation with an experienced bankruptcy lawyer, contact the Law Offices of Ira C. Yellin, LLC, today. Call our Franklin office at 508-570-4111. You can also email us to learn more about our legal services.