Many people dread the thought of bankruptcy because they believe it will result in permanent financial ruin. Fortunately, the reality is not so grim. Bankruptcy is designed to give consumers a clean slate by wiping away their responsibility to pay back certain debts. In the midst of serious financial struggles, bankruptcy may be your best chance at a more stable future.
But Won’t Bankruptcy Wreck My Credit?
Concerns about your credit should not deter you from considering bankruptcy. The fact is, if bankruptcy makes sense for your situation, then your credit has likely already hit rock bottom. Continuing to miss payments and letting the debt build will only destroy your credit further.
After your bankruptcy is completed, you will be in a far better financial position than you were before bankruptcy. You can take simple, easy steps to start rebuilding your credit. And by making smart financial decisions, you can work toward buying a home, taking out a car loan and pursuing other milestones.