Is Bankruptcy Public Knowledge?
Yes, your bankruptcy filing is public knowledge. However, the chance of someone finding out you filed bankruptcy is not as good as you might think. In fact, other law firms routinely call our office to ask us to check to see if an individual or company has filed bankruptcy. The reason it’s difficult for someone to find out you filed bankruptcy is that information is stored on PACER. PACER is an electronic system that stores records. In order to access it, you must register and pay per page for any materials you would like to view. As a result, most PACER users are bankruptcy lawyers, creditors, and attorneys. As a result, the chance your friends, family members, and co-workers find out you filed bankruptcy is very small.
Bankruptcy And Your Credit Report
While we have written in the past about bankruptcy and your credit score, it’s important to know that bankruptcy will show on your credit report for up to ten years. This is not a cause for alarm, because your credit score is more important than how long bankruptcy shows on your credit report. In fact, unless your credit was perfect before filing bankruptcy, your credit score a year after filing bankruptcy will typically recover to what it was the day before you filed. From there, if you follow a few simple strategies for building your credit score, you will continue building a healthy credit score.
Credit Card Offers
Our clients report to us that they start receiving credit card offers shortly after filing for Chapter 7 bankruptcy. One reason for this is that bankruptcy improves your Debt To Income Ratio. Your debt to income ratio compares your income to the amount of debt you have. When you file bankruptcy, you eliminate a large amount of debt. As a result, your debt to income ratio improves. Creditors see you as a good candidate for credit card offers. First, they know you do not have any other debt to pay. Second, they know you can’t file bankruptcy again for at least 8 years. As a result, you will start to get credit offers, which may surprise you.
Most clients are surprised to find out they can keep their car in bankruptcy. However, you may want to obtain a new car just before or just after filing bankruptcy. Even Chapter 13 clients who are in an ongoing bankruptcy, are able to obtain financing for new cars. This surprises many clients. Additionally, the process for getting approved for new vehicle financing in Chapter 13 is quite easy. Again, another myth of bankruptcy is dispelled by the reality that filing bankruptcy serves to protect you more than it serves to harm you.
Life After Bankruptcy Gives You A Chance To Excel
Yes, bankruptcy is public knowledge. What’s more important is how positively your life will be affected from the day you file your bankruptcy. Without the ongoing debt payments, filing bankruptcy is like giving yourself the raise you deserve. You’ll find you have more money left over each month after paying bills, you can balance your budget and save for special events like birthdays and Christmas, and you’ll even be able to help a relative in need if you desire. You deserve a second chance, and we’re eager to help you seize the opportunity.
If you are considering filing bankruptcy, it’s important that you speak with a Charlotte bankruptcy attorney. The call is free and you will come away with a much better understanding of your options. You can reach us at 704.749.7747 or click to request a FREE CASE EVALUATION, and we will be in touch shortly.
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