Being bankrupt is one of the nightmares for just about everyone who owns a business. This is because losing money is something that is difficult to recover from, especially when your business is your sole source of income. Some people, in order to alleviate the legal issues that they have, resort to looking for a bankruptcy san diego law firm that knows the legal aspects there are to settling debts, which may be incurred as a result of, or be the cause of bankruptcy. While some businessmen go through this state, it’s not a problem that cannot be solved. Here are some of the myths and the immediate truth to debunk what you know about bankruptcy.
On Bankruptcy and Credit Report
There are different types of bankruptcy that you can apply for, and contrary to what some people believe, all forms of bankruptcy are not the same at all. There is a so-called Chapter 7 Bankruptcy, which will last for ten years on public record. Other forms of bankruptcy filed will only last for 7 years, such as Chapter 13, collection of debts, tax liens, and judgments from third parties, and an account that is included in bankruptcy. These records, once they disappear, will then allow you to have a better credit score, and in the process, have a better impression among investors and stakeholders.
On Credit Cards and Loans
Credit Cards and Loans serve as temporary solutions to various problems. This is because there are a lot of people who may still want to get these to be financially stable for now. There are lot of loans apart from cards. There are passbook, credit builder, and CD loans which may be much easier to pay as they come with a very low interest rate, reducing your financial burden.