Bankruptcy is not the end of your financial life

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While bankruptcy may initially, negatively affect your credit, its impact may not be as detrimental as some think.

Ronald Belleno

Tens of millions of people lost their jobs because of Covid-19. Less than half have returned to work.  More than 50-percent have not. The pandemic has hit the restaurant, travel, bar, retail and beauty industries the hardest.

If you have become re-employed but are carrying high debt, bankruptcy can protect your income, assets and provide relief. If you are still out of work, bankruptcy can protect your assets. More importantly, it will help with your credit score which will assist in obtaining employment.

The smaller job market has resulted in employers being more selective with applicants. Your credit score is a significant part of that selection process.

The decision to file for bankruptcy is a difficult and emotional one. However, if you qualify to file for bankruptcy, it is almost always the right decision for you and your family’s future. In more than 30 years of helping people achieve a brighter financial future with the help of bankruptcy laws, I have never had one client tell me it was the wrong decision.

While bankruptcy may initially, negatively affect your credit, its impact may not be as detrimental as some think. Most people who qualify to file bankruptcy already have delinquencies, high credit balances, liens, judgments, foreclosures and or other issues that are negatively affecting their credit. In most cases, these individuals are not able to obtain financing or better employment. Bankruptcy does not make this worse.

Bankruptcy creates a clean slate allowing one to start rebuilding their credit immediately. This will make it easier to obtain credit and qualify for better employment.

It is possible to improve your credit score relatively quick, but you must first resolve your outstanding debt. Seeking professional advise can help you resolve your debt and better understand your credit report so you can improve your credit score, lower your expenses and provide a better quality of life for your family.

Bankruptcy is not the end of your financial life, it is the beginning of a better, brighter, financial future.

Ronald K. Bellenot Sr. is an attorney with Bellenot & Boufford LLC, 814 Main St. in Monroe. His areas of practice include bankruptcy law, criminal law, personal injury, real estate, business/professional consultant and foreclosure.

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