Bankruptcy Law

No one expects to file bankruptcy and is rarely the result of intentional actions. But when your debt weighs more than the value you of your assets, bankruptcy might be an option for you to get out from underneath it. That being said, there are specific things to consider when contemplating bankruptcy.

Types of bankruptcy

The two most common types of bankruptcy are Chapter 7 and Chapter 13. Both serve the same purpose: to reduce or eliminate your debt.

  • Chapter 7 is known as “liquidation bankruptcy” and is generally meant for limited incomes that lack the ability to pay back all or some of their debt. Chapter 7 can be filed by individuals and business entities.
  • Chapter 13 is referred to as “reorganization bankruptcy,” in which your property is not sold, and if you can complete a court-mandated repayment plan, you may be able to keep your property. Chapter 13 can only be filed by individuals.

Knowing this distinction can help you determine which route you need to go in order to regain your financial health. But you should still have the advice of a bankruptcy attorney to make sure you choose the right option for your situation.

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How bankruptcy affects credit

Bankruptcy can stay on your credit report for up to 10 years. This can have detrimental effects on your financial health and make it very difficult to get a loan or a mortgage. This, in turn, makes it difficult to recover your credit, and it may be years before you bounce back to your pre-debt financial health.

However, with the help of an experienced and compassionate bankruptcy lawyer, you can make the best decision for your situation and make a smart financial plan going forward. At Ellison & David, our attorneys are as compassionate as they are knowledgeable. We will help you evaluate your losses and establish a path to financial recovery.

How to come back from bankruptcy

The road to recovering your credit after a bankruptcy is long and requires a solid financial plan moving forward.

So what can you do?

  1. Check your credit score regularly
  2. Reestablish credit as soon as possible either via secured credit cards, store credit cards, or car loans
  3. Do your homework on credit card offers
  4. Keep your old accounts active
  5. Do NOT apply for numerous accounts
  6. Only spend what you have

Eventually, your bankruptcy file and discharged debts will be removed from your credit report and you can begin building your finances into a secure and stable means of providing for yourself and your loved ones.

Even if you are just thinking about filing for bankruptcy, give us a call. Our experienced and knowledgeable bankruptcy attorneys are happy to help you through this financially challenging time. Don’t wait to get help.

Bankruptcy Attorneys Serving Wausau, Wisconsin

Bankruptcy might be the best option for you to get out of debt, but you should always consult an attorney who specializes in bankruptcy law to guide you through the decision-making stage. Finances are always stressful. Let us take some of that stress off you by putting your file in our hands. Call us today.