There are many myths which hold that it takes anywhere from 3-5 years to reestablish credit after discharging debt under Ch. 7 of the bankruptcy code. These same myths hold that you won’t be able to purchase a new car or house, and that credit card companies will not find you credit worthy for several years.  While this myth may hold true in some very rare circumstances, it is generally a false statement that should be ignored by most consumers. [Read more…]

The very first and the most immediate thing that happens when you file for bankruptcy is the stay order comes into effect.  As such, if your home was going to be foreclosed or if you were going to be sued, Chapter 7 bankruptcy filing is going to put a stop to all of these. None of the creditors and the collection agencies can pursue you for collection or call you for the payments. Nobody can go on garnishing your wages or bank accounts, even if you were a defaulter and there was a judgment against you. Because bankruptcy is a legal proceeding, it is not only you but the creditors and lenders too who will be required to follow the laws with regard to bankruptcy.
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