Is Bankruptcy Bad?

No. Bankruptcy is GOOD! Bill collectors, however, have us hypnotized that we need “credit” and we have to pay til we die so we have “credit.”

So many people believe bankruptcy is bad – it’s really the opposite. It could be the fresh start so many of us need during this pandemic.

Attorney Peter Francis Geraci answers the question on everyone’s mind – Is Bankruptcy Bad?

Is Bankruptcy a Bad Thing?

No. Bankruptcy is GOOD! It’s in the Bible, and it’s been in the U.S. Constitution since 1787. Bill collectors, however, have us hypnotized that we need “credit” and we have to pay til we die so we have “credit.”

The real question is, “if I get debt discharged in bankruptcy,” can I get into debt again? Can I buy a house and car? Can I get another credit card and start fresh?

Can I Get Credit Again After Bankruptcy?

Yes, Yes, Yes and Yes! You CAN get into debt again, buy a house and car, get another credit card, and start fresh. Here’s why:

Bankruptcy means you list all your debts and ask the Court to discharge your obligations as much as possible. Both Chapter 7 elimination and Chapter 13 repayment end with you getting a Discharge.

As soon as you file, all collection actions must stop, with a few exceptions. Most people who file have bad credit, and a credit score in the 500’s. You cannot get credit when your credit is bad.

So, how does your credit get better by obtaining a Chapter 7 or 13 discharge?

  1. Your debt to income ratio improves: You have less debt.
  2. Your credit score improves, unless you’re unemployed, because now you have less debt.
  3. Creditors see that you can afford to repay them, whereas before your discharge everyone was after you. Find out why we call it “THANKRUPTCY.”
  4. Most car dealers will finance a brand new vehicle for you the day you file Chapter 7. Amazing, but TRUE. Go ask them. We get many people who are told by the car dealer to go file Chapter 7 and then come back to get financing.
  5. You can’t buy a house when you are subject to lawsuits. You can buy a house after bankruptcy discharge. With a bankruptcy Discharge, most creditors can’t sue you and attach a lien on the house, or grab your paycheck so you miss house payments. You are instantly way more reliable with a discharge of debt. Wait two years, save some money, and apply for your mortgage.

So, if you’re overloaded with debt, don’t be afraid of getting a fresh start. Bankruptcy is not bad, it’s GOOD. Read some of our over 30,000 5-star reviews for actual stories from real Geraci Law clients just like you.

Bankruptcy is a safety valve. Most of my clients have credit scores below 600. Go to for access to a free credit report. Owing money you cannot pay is bad. Most people end up without money because of circumstances beyond their control. Bankruptcy adjusts the debt situation to 0 again. You start out even. You get a fresh start, while still keeping the necessities of life. But the prevailing attitude about bankruptcy is that is “bad.”

Bankruptcy is in the Constitution

Bankruptcy was so important to the Founding Fathers of the United States, that, when the U.S. Constitution was written in 1787, they directed Congress to make uniform bankruptcy laws. Article III, Section 8 of the United States Constitution states: “Congress shall make uniform laws relating to Bankruptcy.”

There was little disagreement between the Founding Fathers of the United States of America, when it came to having a bankruptcy law. Freedom from debt was important, and so was the ability to start fresh. Bankruptcy is more fundamental to the United States of America than freedom of the press and freedom from unreasonable searches and seizures.

Bankruptcy is in the Bible

The origin of bankruptcy can be found in ancient traditions, like the Bible, Deuteronomy 15.1: “In the 7th year, each creditor shall release his debtors. This shall be known as The Lord’s Release.” In the Old Testament, it was the policy that a debt could exist only 6 years, and should be relaxed or forgiven in the seventh year. The purpose was to prevent damage to society by allowing a debt to live forever. The lender was cautioned to lend only as much as the borrower could reasonably be expected to repay.

There are other Biblical references to debt, such as St. Paul’s admonition in Romans 13:8; “Strive to owe no debt, except that debt that binds us to love one another.” I have found nothing in any religion that states that owing money to another is “good.” In the Koran, there is a prohibition against lending money at interest. In most Moslem countries today, Moslems borrow at no interest from “banks of the faithful.”

Bankruptcy is not “Bad.” Bankruptcy is a fundamental right with origins deeply rooted in our history and heritages.

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!


Author: Elizabeth Doren Paralegal at Geraci Law L.L.C.

I am a paralegal at Geraci Law L.L.C. (the greatest consumer bankruptcy law firm that ever was or will be!) I talk to thousands of people who are struggling financially.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: