Life after bankruptcy
Some people avoid filing for bankruptcy because of fears about the future but life after bankruptcy may be better than they think.
Even as the nation’s economy rebounded from the great recession, many people in Florida continued to experience severe financial challenges. Many factors can contribute to this including job loss, illness, injury, divorce and more. Regardless of the reason that a person comes to be overwhelmed by unmanageable debt, the need to seek out options for help is consistent.
Many consumers are able to find that help in a Chapter 7 or a Chapter 13 bankruptcy. However, others are hesitant to pursue bankruptcy for fear that they will be unable to ever get credit again or perhaps may be challenged in getting a new job. Understanding the reality of life after bankruptcy is important before making a final decision about this debt relief option.
Will I be able to get credit again after a bankruptcy?
It is true that a bankruptcy will appear on a consumer’s credit report. It is also true that a consumer’s credit score may drop after a bankruptcy. However, according to Bankrate, many consumers can and frequently do re-establish their creditworthiness after bankruptcy.
This may entail starting with things like secured credit cards but eventually, good credit scores can be possible. In fact, getting new credit, using it prudently and repaying it on time is a great way to boost a low credit score.
Will my bankruptcy prevent me from getting a new job?
It is common practice among employers to conduct criminal background checks and even credit or financial checks on potential employees. As CBS News explains, filing for bankruptcy is not a crime and would not be an issue in a criminal check.
Monster adds that while credit scores may be part of some credit checks, this does not preclude a person from getting a job. It may be helpful for job candidates to be prepared to give a brief explanation of any previous financial hardships along with information about how those have been handled.
For many jobs, financial challenges will not factor but for financially related jobs such as in accounting, bookkeeping or other functions it may be more important to discuss these situations. Employers may be primarily concerned about preventing incidents involving embezzlement or other white collar crimes so details that put those fears to rest may help.
How can I learn more about bankruptcy?
The best way for any Florida consumer to learn whether or not a Chapter 7 or Chapter 13 bankruptcy can be beneficial is to talk to an experienced lawyer. This will give people the opportunity to ask necessary questions and have their specific situations properly evaluated.