Bankruptcy Will Not Ruin Your Life
A huge misconception about bankruptcy is that it will ruin your life. You will never receive a security clearance, you will never buy a house, and it will remain on your credit report forever — absolutely none of this is true.
As we already showed you earlier, bankruptcy does not have an impact on your ability to obtain a security clearance, nor does a poor credit score or being involved in debt negotiations. This is because most of these not only go hand in hand but are a sign that you are attempting to solve your debt.
Through bankruptcy, the majority of your debts may be cleared from your name and allow you to take those first steps toward living a debt-free life. This is the purpose of bankruptcy. To give you a second chance.
What About My Credit Score?
When you file for bankruptcy your credit score is going to take a hit, but considering you are in deep enough debt to where you have to file for bankruptcy, your credit score was probably already not great. In fact, in a way, filing for bankruptcy can improve your credit score if you approach the steps afterward in the correct way.
Once your debts have been cleared, you are going to have a chance to build up positive credit through options such as mortgage loans, credit card payments, and car payments. Yes, the interest rates on these are going to be high, but as long as you are paying everything off on time you shouldn’t have to worry about that.
If you’re worried about losing your security clearance due to a bankruptcy, our Honolulu bankruptcy and security clearance lawyers can help. Filling out our questionnaire or calling (808) 518-4844 can be the first step towards solving your financial problems and achieving and keeping your security clearance.