Don’t Let The Credit Blood Suckers Suck Your Wallet Dry!
by John G. Merna, Esq.
Halloween is about scary things we know are not real but enjoy being scared anyway. Bankruptcy is similarly scary because of the myths and urban legends about the process. Here are five “tricks” (myths) about bankruptcy that will help you better understand the powerful help bankruptcy can provide to a financially struggling soul.
Bankruptcy ruins your credit.WRONG!The effect on your credit score from filing a bankruptcy varies but is only a drop of a small number of points. Within a month, that small drop is reversed as your score rebound due to the halted negative reporting. Most people over look that their credit is already ruined and that is why they are considering bankruptcy. Bankruptcy is the gateway to recovering your credit score.
Bankruptcy makes your credit score drop to zero. WRONG!Not true as stated above, the reporting of the Chapter 7 or Chapter 13 filing has a small, short-term effect on your credit score. If your credit score is in the 500’s or lower then you have horrible credit and bankruptcy will help your score improve quickly. The reason the reporting of the bankruptcy has a small effect is because it is only reported in the “Public Records” section. The truth is that bankruptcy does not make your credit bad it is generally bad due to what you did prior and that is why you are considering bankruptcy. Don’t let people tell you the reverse.
Bankruptcy hurts your credit for 10 years.WRONG!The reporting of the bankruptcy can stay on your credit report for 10 years in the case of a Chapter 7 and seven years in the case of a Chapter 13. However, but that is not the same as how long it affects your credit. Your FICO or Beacon score is your credit not the fact that the public records section says you filed bankruptcy. Proof of this is that you can purchase a house with a government backed loan (VA, FHA, Fannie Mae) two to three years after bankruptcy. How is that possible if your credit is bad for 10 years. Beware not just of ghouls and goblins but of well-intended, misinformed friends that frighten you away from helping yourself due to their misbegotten beliefs.
I will have to give up my car and house if I file bankruptcy.WRONG! A good attorney can save both for you and get you a discharge of all your unsecured debt. Spent you time finding an experienced attorney not a cheap attorney. It will make all the difference in ways you won’t appreciate until later.
I will lose my security clearance if I file.WRONG! Bankruptcy is a federal right and recognized as a legal and valid solution when a clearance holder or clearance applicant fall on financial times. You debt is eliminated so you are not longer a security risk in that you might sell secrets to get money to pay your debt. This assumes no other lifestyle issues are in play.
Give Merna Law a call today and get rid of the financial demons that plague you this Halloween! 800-662-8813.
REQUIRED BAR NOTICE: THESE TESTIMONIALS DO NOT GUARANTEE SIMILAR RESULTS.
The Merna Law Group, Attorneys At Law, P.C. …overall experience was outstanding!5 Stars! “My husband and I were very happy with The Merna Law Firm. They are well organized, time manageable, and friendly. I was even able to bring my children with me if I needed to. In court, they stayed right there beside us and answered all questions we had. Our overall experience was outstanding and I am glad we were represented by the Merna Law Group.” Reviewed by A.M. of Suffolk on Mar 5 .
The Merna Law Group, Attorneys At Law, P.C. Didn’t have to worry about anything!5 Stars! “Just keep providing the type of service you do. You business values are based off reliability and service. Today’s Law Offices just don’t offer that kind of experience. Didn’t have to worry about anything!!! Just being able to go on with my normal life and know that all my issues are well taken care of is a relief in itself.” Reviewed by A.P. of Virginia Beach on Mar 4 .
The Merna Law Group, Attorneys At Law, P.C. …debt free!5 Stars! “A friendly staff and outstanding attorney who helped me through a difficult time in my life. Thanks to everyone at the Merna Law Group who helped me move on to and new chapter in my life debt free!” Reviewed by M.F. of Norfolk on Mar 8 .
The Merna Law Group, Attorneys At Law, P.C. …very helpful and friendly!5 Stars! “Everyone at the office was very helpful and friendly. The attorney answered all of our questions and helped us through the entire process. He was also very helpful answering concerns that we had after the process was completed/over. Highly recommended!” Reviewed by M.E. of Virginia Beach on Mar 11 .
The Merna Law Group, Attorneys At Law, P.C. …kind and friendly from the start!5 Stars! “Everyone there was kind and friendly from the start and helped us with everything in a timely manner. They were never rude no matter how much we called or asked questions.” Reviewed by B.P. of Virginia Beach on Feb 20 .