Oklahoma Blog: Bankruptcy Chapters 7, 11 and 13

Many people experience financial problems during their lifetimes, and for some, filing for bankruptcy is the best option to put an end to these struggles.  However, there are many others who allow their financial stress to linger simply because they feel that filing for bankruptcy protection will ruin their credit ratings forever and prevent them from ever being able to secure any sort of financing again.  Simply put, this is not reality, and with the help of an Oklahoma bankruptcy lawyer, you can rebuild your credit.  Below is an overview of this issue.

 

Filing for Bankruptcy Gives You a Fresh Start

After your bankruptcy case is completed, your old and bad debts are generally eliminated.  This is an advantage when compared to simply allowing the debts to linger, as credit ratings wipe out bad debt approximately seven years after the debt is closed.  However, as long as the debt remains in collection, it will remain on your credit report.  Therefore, unless you're able to pay or settle your debts in full and immediately, your best strategy towards cleaning up your credit rating is putting a stop to your debts in collection by filing for bankruptcy protection.

You Can Obtain Credit After a Bankruptcy

Despite public assumptions otherwise, filing for bankruptcy protection could actually provide you with new opportunities to obtain credit.  However, you should do so carefully and slowly.  Since you're basically starting from scratch, you should open a credit account that you can afford and can pay off every month.  As you do so, your credit score will improve and you'll soon have new opportunities to borrow.  As long as you maintain the discipline that's required to protect any credit rating, your score will continue to rise.

If you'd like to learn more about the possibility of a fresh financial start, contact the Oklahoma bankruptcy lawyers at Atkins & Markoff today to schedule an initial consultation.