Credit card companies have done an amazing job of trying to show that filing for bankruptcy will somehow make a person’s situation worse. Their advertising and lobbying has proven effective in trying to ensure that consumers stay in their grasp, struggling to get out from under mounds of debt.
But thousands of people are finding that Colorado Springs bankruptcy is actually a good option that allows them to improve their financial standing. Millions of people nationwide have filed in the last few years, showing that the years of disseminating incorrect information has not stopped many from taking advantage of these consumer-friendly laws.
The bottom line is that bankruptcy is bad for credit card companies and other lenders. They know that when a person files for bankruptcy, they are going to have to fight and scrape to get back a portion of the money that is owed. If they are able to convince consumers to stay out of bankruptcy court, they can continue hitting them with late fees and high interest rates, causing people to make minimum payments that just increase the debt.
Colorado Springs Bankruptcy Lawyer Stephen H. Swift recognizes that many consumers are hit hard by their credit card fees and debts and other bills that can make their lives difficult. Clearing up some common misconceptions about bankruptcy can open up the dialogue for clients who are thinking about bankruptcy but who aren’t quite sure whether it is right for them.
Myths and Truths About Bankruptcy in Colorado
Myth 1: If you have a job you can’t file for bankruptcy protection
• Actually, federal bankruptcy laws allow people who do have jobs as well as those who do not to file for bankruptcy. But under Chapter 13 bankruptcy, filers are expected to have an income to make debt payments.
Myth 2: Bankruptcy ruins a person’s credit
• Most people who file for bankruptcy already have poor credit scores because they have missed payments or made late payments due to their financial situation. Bankruptcy is designed to help a person’s credit by giving them the means to get rid of debt.
Myth 3: People who file for bankruptcy can’t get credit for 10 years
• This is a misconception based on the fact that the Fair Credit Reporting Act allows bankruptcy to be reported for 10 years. But filers get credit card offers shortly after bankruptcy is completed because they now have much less, or zero, debt compared to before.
Myth 4: If you file for bankruptcy, it means you’ve made major mistakes
• Most cases of bankruptcy can be attributed to job loss, divorce, a major ailment or other factors that don’t reflect their failure. The consumers who consider filing for bankruptcy are those who know how to rebound from a difficult situation, even one that is beyond their control.
Myth 5: In Chapter 13 bankruptcy, you have to pay all the debt back
• Chapter 13 bankruptcy, the consumer sets up a manageable 3- to 5-year payment plan in order to pay back a chunk of the debt owed. Once the period has ended, in many cases, the remaining debt is forgiven. Each case is different and it depends on debt owed, income level and other factors.
What Can An Experienced Colorado Springs Bankruptcy Lawyer Do For You?
If you are considering bankruptcy call the Law Office of Stephen H. Swift for a free initial consultation to discuss your situation, your rights and whether bankruptcy is a solution to consider. Serving clients in in Colorado Springs, Pueblo, Denver or throughout the area.
Colorado Springs bankruptcy – 866-893-2440 or 719-520-0164 – legal consultation
