byMalissa Choi

Americans have mixed feelings about bankruptcy. Some people feel like a failure if they are unable to handle their finances. Others appreciate the fresh start that bankruptcy provides. No matter how you feel about the process, it is important to know how filing bankruptcy will affect your mortgage, car loan and ability to get new credit. If you practice financial responsibility after your bankruptcy, over time, you will be able to get new credit and may qualify for a new home loan within a few years. A Keyser WV Professional Bankruptcy Attorney can help you decide if declaring bankruptcy is right for you.

West Virginia residents have two options for personal bankruptcy. Chapter 7 is the most popular, allowing people without enough income to realistically pay their debts to have many of their bills, including medical and credit card debts, to be wiped away. Before you can file for Chapter 7 bankruptcy, you have to pass a means test. If you don’t qualify, you can still use Chapter 13 bankruptcy to restructure your debts and pay them over an extended time period. Either option can help you sleep better at night, knowing creditors won’t be calling you early in the morning or contacting your neighbours to try to get in touch with you. Filing for bankruptcy protection stops calls, letters and other collection efforts by creditors.

Bankruptcy can give you the opportunity to build a positive credit history. First, though, you must change the habits that resulted in the need for bankruptcy in the first place. As part of your bankruptcy, you will be required to attend two financial counselling sessions. The counselling will teach you financial management skills that will help you as you build your credit after bankruptcy. Your Keyser WV Professsional Bankruptcy Attorney may also provide advice that can help you during and after your bankruptcy.

If you feel like bankruptcy may be the best option for your debt situation, contact a law office such as Trozzo, Lowery, Weston and Rock, Attorneys At Law for a consultation. A lawyer can review your financial situation and explain your options, including bankruptcy alternatives.