Law Office of Judith A. Descalso Law Office of Judith A. Descalso

Getting back on your feet after a bankruptcy filing

There is an unfortunate perception among many Americans that filing for bankruptcy is the culmination of a string of poor financial decisions. While it is true that no one wants to find themselves in a position where they even need to consider bankruptcy to begin with, the fact is that filing for bankruptcy shouldn't be viewed as the end of the line for the filer's financial situation. It should be viewed as the beginning - the first step toward greater financial freedom and stability.

Whichever view you take, however, the fact remains that the prospect of rebuilding after a bankruptcy filing is daunting for most people. There are definitely pros and cons to consider. For instance, depending on the type of bankruptcy filing you pursue, it may be a few years before you are able to think about purchasing a home. But, in most cases, it won't be more than five years. On the other hand, if you file for Chapter 7 bankruptcy, as soon as the process is completed all debts that aren't paid off by the liquidation action are discharged - meaning you don't have to worry about them anymore.

One of the biggest drawbacks for some people is knowing that there will be a big "black mark" on their credit score for a number of years. But, in reality, there are many different steps that can be taken to slowly rebuild credit, and perhaps even get to a credit score that is higher than you've ever had.

Our firm recognizes that considering a personal bankruptcy filing is a major decision for individuals and families in Escondido. We strive to help our clients understand that after the filing is complete there are ways to immediately begin improving your financial situation, so that in the long run the pros of a bankruptcy filing outweigh the cons.

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