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Whether you’re contemplating bankruptcy or have a bankruptcy in your past and are concerned about its impact on your credit, it can be very difficult to separate myth from fact. In part, that’s because both bankruptcy and credit management can be stressful, increasing the tendency to believe the worst-case scenario. In addition, much of the mythology surrounding bankruptcy and credit is partially true or has some basis in fact.

While every situation is different, here is some fact-based information about bankruptcy and credit to help dispel the myths.

It’s no secret that collection agencies, debt buyers, and other debt collectors don’t always play fair. Most people who have been through a financial crunch and fallen behind on their bills have had at least one bad experience with a debt collector who lied, shouted at the debtor, made outrageous threats, or otherwise attempted to trick or bully him or her into compliance. Needless to say, dealing with debt collectors is never something people enjoy.

Many people facing foreclosure want to know whether bankruptcy can stop the foreclosure process and save their homes. The answer isn't a straightforward “yes” or “no”. Rather, it is something like "yes, possibly, but probably not exactly the way you mean, and it depends on your circumstances." The information below provides a general overview of how bankruptcy impacts foreclosure.

Both Chapter 7 bankruptcy and Chapter 13 bankruptcy provide powerful tools for people who are overwhelmed by debt. However, neither type of bankruptcy is a magical solution that puts an instant end to a debtor’s financial problems. In a typical Chapter 7 bankruptcy case, it takes about 4 to 6 months to receive a discharge. A Chapter 13 case is built around a repayment plan that lasts from three to five years.

Nobody is eager to file bankruptcy, and for some people struggling with debt there are other viable alternatives. For most people, doing nothing and hoping for the best is not a viable alternative. Still, it’s one that far too many people choose.

There’s no question that bankruptcy is a negative on your credit report. A Chapter 7 bankruptcy case stays on your credit history for 10 years, and a Chapter 13 case for seven. It will come as no surprise that most creditors don’t love to see bankruptcy when they’re reviewing your credit report.

That said, the impact of a bankruptcy filing on credit scores differs significantly depending on your starting point—an important piece of the puzzle that is often overlooked when people offer generalized advice about bankruptcy and credit.

I can’t imagine that there are many people in North Alabama who aren’t familiar with attorney Cliff Hill.  Cliff was a network news anchor for several years prior to attending law school and his law school journey was not an easy one.

Technically, any individual can file for Chapter 7 bankruptcy unless the debtor, in the preceding 180 days, either:

As bankruptcy rates among American farmers continue to rise, a bill was recently introduced in the Senate that would make some changes to Chapter 12 of the U.S. Bankruptcy Code.  The Family Farmer Relief Act of 2019 is designed with the intention to help family farmers reorganize after falling on hard times.

Hospitals are usually one of the last places a person wants to visit.  It’s usually a relief when a patient leaves and returns home. That is until the medical bill arrives in the mail a few weeks later.  Medical bills rarely end up being an amount the patient expects, as it is virtually impossible to know what the final amount will be until the bill arrives.