Some of the things that truly matter in life often come with a slew of myths and misconceptions. Chapter 7 and Chapter 13 bankruptcies are no exception to this concept. Many of the ideas about bankruptcy that frighten Long Island residents are not true. To make the best financial decisions and find the right way to clear your debt, it is crucial to investigate all of your options before choosing a path. This includes any of the myths surrounding Chapter 7 and Chapter 13 bankruptcy.
One of the best ways to address the negative ideas you may have heard about filing bankruptcy is to take your case to an attorney. He or she will know exactly how bankruptcy works in the state of New York and can give you accurate, personalized advice. Your lawyer will also dispel any incorrect notions you may have about bankruptcy. In the meantime, this blog post will debunk three of the common misconceptions about bankruptcy.
Chapter 13 bankruptcy affects your credit report for no less than 10 years
Only a Chapter 7 bankruptcy will stay on your report for a decade. Chapter 13 only appears for seven years.
It is impossible to secure a loan or a credit card after bankruptcy
In fact, there are plenty of lenders willing to give you credit after filing bankruptcy. The real trick involves knowing how to rebuild your credit wisely. Your attorney can give you effective tips to help with this goal.
Even a small amount of debt affects a credit score significantly after filing
The truth is, those with fairly low amounts of debt will have a better credit score after filing Chapter 7 or Chapter 13 bankruptcy than those with massive amounts of debt.