Slip And Fall. The filing of chapter 7 bankruptcy documents is a form of consumer protection that helps people who have become overwhelmed with debt. Federal bankruptcy laws protect U.S. residents from collections activity, creditor harassment and lawsuits when these individuals cannot pay their obligations on time, if at all. Numerous myths and misconceptions prevail among the general public regarding bankruptcy laws and consequences. Credit Rating Issues One misconception about chapter 7 bankruptcy is that it completely destroys the person's credit rating for at least seven years. Although the filing does remain in the credit score considerations for that length of time, there are several ways to start rebuilding credit after getting a fresh start. A first step might be acquiring a secured credit card.
The consumer deposits money in an account with the credit card company and is issued a line of credit for that amount.