Chapter 7 is such a great opportunity for some people (who wouldn't want debts forgiven?), but it does come with a few downsides as well. One of those negative consequences is how your credit is impacted. However, if you're thinking about filing for Chapter 7 bankruptcy, you need to consider the entire picture.
People who qualify to file for Chapter 7 bankruptcy in Augusta have usually already done some pretty good damage to their creditworthiness. Between having too much debt and not making payments on time, their credit scores dip lower and lower all the time. If they do not file for Chapter 7 bankruptcy, they will undoubtedly keep digging themselves into a deeper hole until their credit is completely shot.
On the flip side, if a person opts to file for Chapter 7 bankruptcy, it's going to be on her record for 10 years. This does not mean she is totally out of luck when it comes to securing credit. Yes, it will be more difficult when she is looking for credit, but it's not uncommon to be approved—it will just usually be at a higher interest rate. It is still completely possible to own a home as well, because you are allowed to apply for a mortgage two years after filing Chapter 7 bankruptcy.
The bottom line is that every debtor’s situation is going to be different, but anything is certainly better than staying in debt and getting into even more financial trouble. Filing for Chapter 7 bankruptcy gives you the opportunity to stop the downward spiral and get a grip on your finances.
If you are thinking about filing for Chapter 7 bankruptcy, call 706-868-1968 or 888-704-3644 to contact the Augusta bankruptcy law firm of Seymour & Associates, P.C. for a free consultation.
This answer does not create an attorney/client relationship and is for informational purposes only. We are a law firm licensed in Georgia. A consultation with a qualified attorney in your area is required to determine specific legal advice as to your situation and applicable law. We are a law firm designated by Congress as a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code.