Going through a really bad financial crisis can be really traumatic for people. However, bankruptcy laws are designed to help individuals and companies out of the financial mess, so that they can begin their new lives with a financially clean slate. Automatic stays and discharge of debts are a great help to individual consumers who have filed for bankruptcy under chapter 7 or chapter 13. However, despite various benefits like foreclosure defense, debt relief, and financial stability, there are many concerns amongst people regarding their future.
Bankruptcy lawyers of Recovery Law Group , a Sacramento based law firm confirm that many individuals are concerned about the public records of their bankruptcy filing. Bankruptcy filings are public, i.e. they are a part of publicly available court documents and can thus be obtained by anyone from the general public. However, having unnecessary fear about this is not fair as being in public records doesn’t mean that everyone will see them or go out of the way to look for them.
Your Future After Bankruptcy
Despite the best interest of the public in mind, there are many myths and misconceptions associated with bankruptcy. The U.S. Bankruptcy Code was designed to help people struggling with unpaying debts not to punish them for their mistakes and ruin their future. The effects of bankruptcy are limited in time and it rarely affects your ability to obtain any loan, credit or any other financial transactions. In fact, over time, when you improve your credit ratings, these financial hurdles are also removed.
It is a misconception that the general public is concerned with your bankruptcy records. Your filing records (information provided on a credit report) is major of use to creditors and money lenders who use this as a line to assess your financial background for extending loans and credits. Despite the fact that bankruptcy filings can remain on your credit report for as long as 10 years (sometimes less), it does not affect your ability to get credit or loans or improve your credit score. In fact, bankruptcy filers can easily rebuild their credit after bankruptcy by following certain rules.
Get a Fresh Financial Start after Bankruptcy
Filing for bankruptcy is often embarrassing for people. Admitting that their financial decisions were not as sound as they had thought. No wonder, so many people are concerned about privacy when it comes to the bankruptcy filing. It is therefore important to dispel any fear and myths associated with bankruptcy filings. The bankruptcy records are public records technically, however, they remain private mostly. They are used only by creditors who are allowed access to your credit report such as those listed in your case and on any application where you personally disclose the information.
However, more important than fretting over bygones, is to get a hang of things and start improving your financials with a new lease of life thanks to bankruptcy. You have a chance to gain control of your finances, clear your pre-existing dues and make timely payments to ensure you can not only save your home and property but also are able to make efforts to build assets over a period of time. With bankruptcy discharges clearing your way, you can make way for a brighter future for yourself.