Frequently Asked Questions
How do I know if I need to declare bankruptcy?
You want to declare bankruptcy when the value of your assets is lesser than the money you owe.
Do your medical bills, credit card debts, utility bills seem to frighten you because your monthly salary/income isn’t enough?
Borrowing at this stage can make matters worse.
Filing for bankruptcy may be the only reasonable way out.
Will Filing Bankruptcy Ruin My Credit?
Most people mistakenly believe that their credit and their credit report are the same thing. This is wrong. Your credit is your ability to borrow money, while your credit report is a summary of your payment and credit history. Although you may have perfect payment history, if you currently have more bills than you can afford, you have no credit because no one will loan you any more money. Many people discover this when they apply for a consolidation loan. After the bankruptcy, you will have little, if any, debt and you will be a better credit risk to creditors because you will be able to afford the payments on new debt. And in most cases, if you have been late on payments to your creditors, your score will improve just within a few months since that collection debt is wiped out in bankruptcy.
Will Lenders Ignore Me If I File For Bankruptcy?
No. Many lenders understand how bad the economy is currently and are willing to offer credit to those who file for bankruptcy. You may only experience high-interest rates.
Can I Apply for a New Credit Card After I Have Filed?
Yes. You can still be eligible to obtain a credit card. Although the offers available to you after your discharge will likely be different than those you received before.