Call for a free bankruptcy consultation

Louisville |


New Albany |

Schwartz Bankruptcy Law Center

Don't be afraid to file a Chapter 7 bankruptcy

A lot of people are terrified at the idea of filing for bankruptcy, for a number of reasons.

In reality, a Chapter 7 bankruptcy will have a negative effect on your credit for a while. There's no avoiding that. However, it's important to keep some perspective about the situation.

Here are some of the most important things you should know:

1. Your credit may already be on life support

Credit scores are complicated, but one of the largest things that factors into your score is the amount of debt you have compared to the amount of available credit you have. If your credit cards are maxed to their limits, your credit is already suffering.

In practical terms, a credit score that's heavily damaged by overwhelming debt isn't much better than a credit score that's damaged by bankruptcy. With bankruptcy, however, you're able to get a fresh start -- without the burden of all that debt following you around.

2. Bankruptcy is not a moral failing

Some people equate personal bankruptcy with a moral failure. It's not. It's a choice that you are legally entitled to make when your debts are overwhelming and you have no hope of getting out from under them any other way.

Bankruptcy is meant to be a financial tool, like any other. Not availing yourself of that tool when you should is a big mistake. Bankruptcy is the best way to end wage garnishments, lawsuits from creditors, debt collection calls and the other financial problems that come along with unmanageable debts and protect your family's financial future.

3. You can still have access to credit after bankruptcy

A lot of people mistakenly believe that filing bankruptcy means that they'll never have credit again. That's simply untrue. There's an entire industry of lenders out there who are in business simply to provide credit to people who need a second chance.

In addition, after you start making on-time payments and have shown your financial responsibility, your bankruptcy will begin to matter less and less. You'll eventually be able to qualify for credit cards and loans again from regular lenders within a few years.

Don't let fictions about the effects of a Chapter 7 bankruptcy scare you away from the process. Talk to an attorney about your situation to determine if bankruptcy is the right decision for you.

No Comments

Leave a comment
Comment Information
Make A Payment Email Us For a Response

Need A Solution To Your Debt Problems?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Make A Payment
Schwartz Bankruptcy Law Center

Office Locations:

Louisville Office
3339 Taylorsville Road
Louisville, KY 40205

Phone: 502-785-8549
Phone: 502-485-9200
Fax: 502-485-9220
Louisville Law Office Map

New Albany Office
501 State Street
New Albany, Indiana 47150

Phone: 502-785-8549
Phone: 812-945-9200
Fax: 502-485-9220
Map & Directions