At Sheehan Law Firm, we have helped thousands of individuals file for bankruptcy. Over the years, we have also heard countless clients ask questions such as "What will happen to my credit score?" "Is it morally acceptable to try to erase debts that I owe to family members or other parties?" "What if I have a security clearance?"
Our Mississippi Gulf Coast bankruptcy attorneys are here to help you understand that there is life after bankruptcy and to help you make the most of it.
The Ethics Of Filing Bankruptcy
If you are thinking about pursuing freedom from creditor harassment and debt through Chapter 7, 11 or 13, you are not alone. According to a FindLaw survey in May 2011, one out of every eight Americans has considered filing bankruptcy.
Filing for bankruptcy is not inherently shameful, nor does it mean that you cannot ever repay what you owe. If you choose to someday repay your family members or friends for the money they loaned you, you can. Bankruptcy simply removes your legal obligation to do so.
Rebuilding Your Credit Rating
Another myth is that filing bankruptcy will forever ruin your credit rating. That is not true. In fact, you may be able to rebuild your credit score quicker through bankruptcy than you could by attempting to repay one creditor at a time.
Here are a few additional ways to begin repairing your credit score after bankruptcy:
- Create a weekly or monthly budget and stick to it.
- Be very strict about paying all your current bills and loans on time.
- Get a secured credit card that draws from money you place into a bank account ahead of time.
Debt and Your Security Clearance
We have represented hundreds of clients on the Gulf Coast that have been members of the military or contractors. Most have expressed a concern that bankruptcy may somehow affect their clearance. Contrary to what you may have heard, a bankruptcy alone cannot be grounds for taking away your clearance. In fact, bankruptcy may actually prevent you from losing your clearance.
Negative credit reporting and excessive debt can put your security clearance at risk. A bankruptcy can discharge debts that endanger your security clearance and put you back in control of your finances. It is important to discuss your situation with an attorney to discuss all of the options available to you.
Learn More About Loan Qualifications And Credit Scores From Our Experienced Attorneys
To discover how our law firm can help you find a fresh financial start and begin a new life after bankruptcy, schedule a free initial consultation by calling the lawyers of Sheehan Law Firm at 228-875-0572. You can also contact us online today.