Many people in Mississippi and elsewhere initially approach the bankruptcy process with trepidation, and for a number of reasons.

For starters, it is a common assumption among many would-be filers that filing for Chapter 7 bankruptcy will not shield any of a debtor’s property from creditors.

As it turns out, that is far from the case, with many people happily discovering pursuant to a candid conversation with a proven bankruptcy and debt relief attorney that the bankruptcy exemptions enumerated under federal law include significant protection against creditors. Many persons are able to keep their homes, their vehicles and many other assets.

This positive aspect of bankruptcy is of course coupled by a filer’s ability to shed unsecured debt, stop garnishments and creditor harassment and stay litigation activity.

Another view often held by filers that is belied in the wake of a bankruptcy discharge is this: Many of them don’t believe that they will ever again be considered a good credit risk. They don’t think that lenders will view them as trustworthy borrowers or that they will be able to secure new sources of unsecured credit, such as a credit card.

Without question, that is seldom true. In fact, a bankruptcy discharge can open up new opportunities to a person who has taken the requisite steps to legally eliminate debt.

The reasons for that are several. A person who has emerged from the bankruptcy process with debts discharged is a comparatively attractive client for many lenders. For most debtors, too, a bankruptcy filing is a once-in-a-lifetime experience. And most consumers who have gone through the process have a strong desire to manage their money and debts well.

As an adviser who recently contributed a media article on post-bankruptcy life notes, it is common for people emerging from Chapter 7 bankruptcy to secure new lines of credit, restore their credit rating and move forward with their lives.

An established and client-empathetic debt relief attorney can provide further information on the bankruptcy process and post-discharge opportunities for restoring financial health and moving forward with a fresh start.

Source: Fox Business, “How do I establish credit after bankruptcy discharge?” Justin Harelik, April 22, 2014

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