Jimmy E. McElroy & Associates
Dedicated to Helping People in Financial Distress
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what bankruptcy can do Archives

How will bankruptcy affect your credit score?

If you are one of the many people in Tennessee who are struggling to keep up with overwhelming debt payments, you likely have begun thinking about filing bankruptcy so as to get most of your debts discharged and consequently give yourself a fresh financial start. While bankruptcy can certainly accomplish these goals, you likely also worry about how it will impact your credit score and credit report.

Should I feel ashamed for filing for bankruptcy?

You may have been putting off speaking to someone about filing for bankruptcy, despite dealing with extremely high financial stress. If so, you are like many other Tennessee residents who are being held back by a pervasive stigma of personal bankruptcy. It may put some of your worries to rest learning that this stigma is largely unnecessary. When a business files for bankruptcy, people see it as a way for the company to restructure its debts and come up with a more effective business plan. Why should it not be the same for individuals?

What can bankruptcy’s automatic stay protect you against?

As a Tennessee resident who is getting hounded by creditors or debt collectors, you may be feeling as if you are at your wit’s end. Receiving seemingly constant communications from creditors can prove anxiety-inducing at best, and you may be wondering whether bankruptcy’s “automatic stay” could potentially grant you some temporary relief.

Stop phone harassment from credit card companies

Circumstances beyond your control may have forced you into financial difficulty. Believing the circumstances to be temporary, you may have used credit cards to pay your bills, becoming saddled with intractable debt in the process. At Jimmy E. McElroy & Associates, we understand that many people in Tennessee prefer to explore options other than bankruptcy, choosing to file only as a last resort. To that end, you may have negotiated a repayment plan with your credit card company. Once you and the card issuer reached an agreement, you might have reasonably assumed that that would be the end of the harassing phone calls. 

Does filing for bankruptcy provide any benefits?

Financial stress may have you feeling hopeless about the future and your ability to live debt-free, but fortunately, there are options to help you regain control of your situation. Bankruptcy often gets a bad rap from many people in Tennessee, but the reality is that while it does affect your credit and other aspects of your financial reputation, it can also provide a fresh start as you implement changes to have more control over your finances. 

Is it really impossible to get rid of student loans?

If you are currently thinking about filing for bankruptcy in Tennessee, you were probably disappointed to hear that you were still liable for student loans. However, according to Forbes, this is not always the case. Forbes is clear that a discharge of student loans during bankruptcy filings is rare, but it is nonetheless a possible outcome.

Rebuilding credit should be a focal point after bankruptcy

When people hear the word "bankruptcy," they often associate it with negative consequences. However, for many people, filing for bankruptcy can be the beginning of a fresh start and an opportunity to redevelop their financial foundation to prepare for a successful future. After the dust has settled and a person's bankruptcy is filed in Tennessee, their focal point should be on rebuilding their credit. 

More ways to finance a new business after bankruptcy

As previously discussed, there are ways for a Tennessee business owner to create a new business after going through bankruptcy, including starting a small business that does not require a lot of capital, or by seeking alternative means of financing. Even so, going bankrupt does not shut the door on going to traditional lenders to seek loans for your new business. There are some possibilities that a bank or a credit union might look past your bankruptcy and provide you with some financing.

*We are a debt relief agency.
We help people file for bankruptcy relief under the Bankruptcy Code.