There are many misconceptions and myths around what bankruptcy is or what it will or won't do for a person. Most of these myths have something to do with bankruptcy "ruining" your credit for some long period of time, such as 7 to 10 years. These ideas are completely untrue. The bankruptcy laws were written to give individuals or businesses the opportunity to either eliminate all their debts altogether in order to start fresh and debt free or to have an extended period of time to pay off their debts interest free. Businesses are also given the opportunity to reorganize and regroup in an attempt to become profitable and viable again. If you have heard odd or discouraging things about bankruptcy, including being told it's a bad thing to do or will ruin your credit, you need to speak to Delaware Bankruptcy Attorney Peter Schaeffer at Avenue Law and get the true facts about bankruptcy.
Because there several different types of bankruptcy, you may have heard "you don't qualify" because you may not for one type but may very well qualify for another. We have had people come to us who were told that bankruptcy couldn't help them with their foreclosure. We were able to explain to them that Chapter 13 bankruptcy can help a person do just that.
The idea that because bankruptcy will remain on your credit report for 10 years and will therefore "ruin your credit" simply isn't true. In fact, successfully completing your bankruptcy program means that you will have no bad debts and no unpaid bills. There are various way to rebuild your credit standing within a few months of completing your bankruptcy and there is no reason you will not find yourself about to secure a car loan or establish various types of secured or unsecured credit. Because there have been some new laws passed about bankruptcy requirements, you may have been told you will no longer qualify for Chapter 7 debt elimination. This is also untrue. Most people who would have qualified before will still qualify now. Speak to us about what bankruptcy can do for you to eliminate debts and end the collection calls.