Will a BK ruin my credit? Filing for bankruptcy is a challenging choice for some debtors to make. For many people suffering from financial hardships, the mention of the “b” word makes them panicked about their financial future. And it’s true – sometimes privately reorganizing how you will pay off your debts may the best route for you. However, filing for bankruptcy can be used as a tool to ensure that you have a debt-free financial future.
Not all financial situations are the same – the type of bankruptcy that you file for will depend on what you value most. Do you want to prevent foreclosure of your home or would you prefer to walk debt-free in a shorter amount of time? If you prioritize keeping your property, then filing for a Chapter 13 bankruptcy with the help of a Watertown bankruptcy attorney will ensure that you can move past your financial stresses once and for all.
A Chapter 13 bankruptcy is a court-approved payment plan to pay back the majority of your debts over a span of three to five years. Although some debtors prefer filing for a Chapter 7 bankruptcies since most of their debts will be liquidated, filing for a Chapter 13 will ensure that your credit reporting period is shorter. In filing a Chapter 13 bankruptcy, you will have a credit reporting period of seven years as opposed to a ten-year reporting period. If you continue to make your payments during the three to five-year debt repayment span, your credit score will recover from the debts that you’ve incurred.
Another concern that many debtors have is “Will I be able to keep my home after bankruptcy?” With a Chapter 7 bankruptcy, you agree to have your property sold so that you can walk debt-free. If you want to keep your home, filing for a Chapter 13 bankruptcy will ensure that you keep all your property and prevent foreclosure. With the assistance of a seasoned bankruptcy attorney, you will have the tools to overcome your financial burdens.