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St Louis Bankruptcy: What Are The Consequences Of Filing For Bankruptcy?


A lot of people have asked me this question over the years. Many have been led to believe that the filing of a St Louis bankruptcy will put them in a worse position than they are currently in. Or even worse, they’ve been told that such a filing would result in some heavy consequences. None of these claims are true. Below, I’ll discuss a few of the more frequent ones I hear about:

By far the most common worry amongst people filing for bankruptcy in Missouri is that by doing so, they will have ruined their chances of rebuilding their financial future. But the exact opposite is true. The government describes this process as a “fresh start / clean slate”. It is a chance to wipe the slate clean, start fresh, and rebuild. For instance, you will have an opportunity to rebuild your credit score by quite a bit within the first year after filing (people usually see a bump up in their score by about 100 points within the first twelve months). And certainly within a year and a half to two years after filing, your credit score is back where you want it to be. So it won’t happen overnight. But a lot quicker than most people believe.

Another common misunderstanding about bankruptcy has to do with your ability to secure lines of credit in the future. I have had tons of folks tell me that “they heard from someone” that they can never get another car, a house, or even a credit card after they file for bankruptcy. Nothing could be further from the truth. Lenders will literally line up to give you a loan to purchase large assets (like a home or an automobile), and credit card companies will cause your mailbox to collapse under the weight of all the offers they will send to you. Why? Because after you file, you will become the most attractive candidate in the world to them. In one swift motion, your income to debt ratio will flip (all of your unsecured debt will have been wiped away, so presumably you’ll be in a great position to make minimum monthly payments towards the new card).


This is just a sample of the misunderstandings that surround the filing of a bankruptcy. But that is why it is so terribly important to get solid information from an experienced St Louis bankruptcy lawyer!!

The affordable St. Louis bankruptcy attorneys at The Bankruptcy Company have been saving and protecting people’s assets for years. Our goal is to make sure that you keep the assets and property you want, discharge the debts that you want to get rid of, and do it all at an affordable cost to you. All phone conversations and office consultations are free of charge.

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