Bankruptcy and Your Credit Report

Augusta GA Bankruptcy Lawyer

Bankruptcy remains on the credit report for nearly 10 years and thereby it becomes difficult to get any sort of credit from the banks including mortgage and car loan. Most of the lenders would reject your application if they see that you have filed for bankruptcy. Even if you manage to get credit, you will be charged high rate of interest. But this may be a small price to pay.

You should consider filing for bankruptcy if you are deep in debt. Here are some of the main reasons why people file for bankruptcy. One of the most common reasons for people to file for bankruptcy is loss of job. A family depending on two salaries every month is all of a sudden made to adjust with just one, then financial trouble is almost certain.

Another major reason why people file for bankruptcy is to avoid harassment by creditors. Bankruptcy has an automatic stay provision. When you file for bankruptcy, an automatic stay comes into effect. During the stay, creditors cannot seek to collect the debt from you. Homeowners facing foreclosure can also file for bankruptcy to prevent foreclosure.

While bankruptcy will not eliminate your mortgage on your property, it will allow you to structure a plan so that you can repay the amount that you are behind on your mortgage.

If you have questions about filing bankruptcy and you are in the Augusta Georgia area, then call our bankruptcy attorneys today for a free consultation.