South Bend Bankruptcy Lawyer - Will Bankruptcy Ruin My Credit?

One thing that I've heard from many different people is a concern on whether or not filing Bankruptcy would ruin their credit.  There's not a real easy answer for that.

Obviously, a Bankruptcy filing will appear on your credit report and creditor's may decline to extend you credit for anything for a period of time.  But, the reality for most people is that by the time you get to the point where Bankruptcy becomes one of the few options available to you, your credit score is likely pretty bad off.  If you are at the point of filing a Bankruptcy case, your credit report will likely show late payments, charge offs, judgments, collection agency referrals, etc.

First and foremost, fear of what Bankruptcy will or won't do to a credit score should have very little to no impact on your decision to file Bankruptcy. You should never look at your ability to get credit or your credit score as anything more than a tool businesses use in deciding whether or not to lend you money or how much to charge you for loans.  Your credit report is not a measure of your worth of a human being, but rather sets forth a number that businesses use to make decisions.

Filing a Bankruptcy case (either Chapter 7 or Chapter 13) is more based on whether or not you can truly afford your debts.  Many people file Bankruptcy everyday for a variety of reasons.  The reality is that most of the people that file had simple just came upon bad situations where they could no longer afford their debt because of a job loss, divorce, or unexpected medical issues.  These are things that can happen to any of us, and that is what Chapter 7 and Chapter 13 Bankruptcy is there for.

As for your credit score, little by little you'll rebuild it after you've received your Bankruptcy discharge and usually to the point where it is a lot better than it has been in some time.

South Bend Indiana Bankruptcy Lawyer - Can I Keep Anything After I File Bankruptcy?

This is a question that many people have and for obvious reasons.  You are facing financial difficulty, but you still need your car to get to and from work and it would be nice to hang onto a few things. 

Don't worry, the Bankruptcy laws allow you to keep a portion of your property.  These are referred to as "exemptions" and each state gets to set their own limits, and they do vary change from time to time.  Currently, the following exemptions are allowed in a Bankruptcy case filed in Indiana:

$350 (for single) and $700 (for joint filing) intangible personal property.  Think of this as the cash you have on hand, in a checking or savings account, or under the mattress.  The amount is looked at from the day you file a Bankruptcy Petition.

One common exemption people have heard about is what is referred to as the "Wild Card."  The exemption allowed is $9,350.00 for an individual.  If you and your spouse are filing then you can claim $18,700.00 in exemptions.  The technical term for the "wild card" is the "tangible exemption."  This is property that you own, not including real estate.  Think of this as things such as your car, jewelry, furniture, guns, etc.

Finally, if you own a home, Indiana allows for a "homestead exemption" of up to $17,600 for an individual filer and $35,200 for couples filing together.

This is a quick overview to just show you that Bankruptcy doesn't require you to give up everything that you owe.  You will be able to keep some of the items that you own, while at the same time get a fresh start!  Contact a Bankruptcy Attorney today to see what legal options you have. 

The Law Office of Jeffery M. Haupt is located in South Bend, Indiana and helps people file for Bankruptcy.  I am a debt relief agency.  The information in this blog should only be used for educational purposes and not be construed as legal advice.  Nothing in this blog creates an attorney-client relationship between me and any readers of this blog.  No attorney-client relationship is created until you have a document from me saying so.