CREDIT
One of the biggest concerns that I hear from clients who are interested in filing for bankruptcy is whether or not they’re going to be able to get credit again in the near future. It’s amazing that someone who is struggling financially will worry about future credit before they have even gotten out of debt in the first place. The concern is real and it’s understandable. We live in a world consisting of runaway credit. This includes credit cards, auto loans, home mortgages, installment payment plans, payday loans and all kinds of other types of credit institutions. One simply cannot imagine being able to survive without having access to credit cards in their wallet. People worry about how they are going to rent a car, or purchase an airplane ticket. People worry about how they are going to survive paycheck to paycheck if they don’t have the ability to charge relying on a credit card.
For those that are really concerned, they need not be. One of the reasons why they need not be is that credit card companies are going to make offers to you immediately after filing a bankruptcy case under Chapter 7. The interest rate and the amount of the credit might not be as high as you might think. However, starting off with some form of credit, no matter what the interest rate and no matter what the cost is enticing to people who have just filed for bankruptcy. So with credit being such a major concern of people before they file, they soon realize that credit is something very obtainable after the case is filed.
APARTMENT RENTAL
Another major concern of people who are thinking of filing for bankruptcy is whether or not they will ever be able to get an apartment rental. For some reason, you will think that if you file for bankruptcy, no one will rent you an apartment. This is simply not the case. If you have the ability to make a strong down payment and if you show the ability to make monthly payments, either through wages or other source of income, then you are likely to get an apartment rental relatively easily after a bankruptcy case. There are some cases where clients have gone to certain lending institutions are certain rental communities and simply were not able to get a lease. I attribute this fact more to the inability to pay and more to the inability to provide adequate security deposit then the fact that you have filed for bankruptcy relief. Not only can you rent an apartment immediately after filing for bankruptcy, but you have the ability to apply for a mortgage within one year of filing for chapter 7 bankruptcy. Under the new laws that have passed recently in Congress, you have a good chance for success. If you have a foreclosure on your record or bankruptcy on your record and you can show that this was done due to the economy, loss of job, or illness, then under the back to work program, you have the ability to qualify for a mortgage within one year of bankruptcy or foreclosure. So for those that think they’re not be able to rent an apartment or not been able to get a mortgage after filing for bankruptcy, the opposite is true.
EVERYONE KNOWS ABOUT MY CASE
Another major concern that clients believe is that if you file for bankruptcy, then everyone is going to find out about their bankruptcy filing. People are worried that their employers will know. People are worried that their neighbors are going to know. The truth is neither one of these people has to know unless you tell them. The one exception would be if you’re being garnished. Then I’m going to send proof of your bankruptcy filing to your employer to stop the garnishment. However, if you’re not being garnished, then your employer does not need to know about your bankruptcy and will not know about your bankruptcy unless you tell them for some reason. As far as family and friends, if they were not creditors of your bankruptcy, then they will not receive notice from the clerk of U.S. Bankruptcy Court. If you’re not going to receive a notice from the Clerk of the U.S. Bankruptcy Court, then they are not going to find out about your case. The one exception would be is if someone goes down to the federal bankruptcy court, gets on a public access computer, and looks up your name. The likelihood of someone going to the bankruptcy court website or the bankruptcy court’s computer to see if you filed for bankruptcy is highly unrealistic. Thus, if you are concerned about people finding out about your bankruptcy, you can rest assured they will not. The only time people ask about your bankruptcy, is if you are filling out an application for a mortgage, or apartment, or possibly a specific job. However, the fact that you filed for bankruptcy under chapter 7 is your federal right. You cannot be discriminated against based on the fact you file for bankruptcy protection. If you can show that someone discriminated against you based on your filing, then you have the right to bring an action in the federal court and seek sanctions against that person or entity.
As you can see, people who are thinking of filing for bankruptcy have many concerns. Most of these concerns can be explained away by going to a competent, experienced bankruptcy attorney in your local area. For more information about bankruptcy, feel free to contact the office at area code 847-520-8100. I would be happy to help you answer all of your questions and the first consultation is always free.
