ARE you sick and tired of being in debt and having bad credit? Do you want to start over but simply don’t know where to begin? Is filing bankruptcy an option for you, or are other options available?
As we go move towards the end of 2020, this is a good time to look at your finances and see how you can leave your debt problems behind and have a better year for yourself and your family.
I find that a lot of people are mostly concerned about the effects of bankruptcy on their credit more than anything else. Most are under the mistaken belief that once they file for bankruptcy, their credit is ruined forever and that they will never be able to buy a house or obtain credit again. Of course, this is simply not true. Let me explain.
Yes, bankruptcy is reported on your credit record for 7-10 years depending on the type of bankruptcy you are filing but a lot of people quickly bounce back from bankruptcy in as little as 2-3 years. I also find that most people who are in debt trouble already have bad credit anyway and filing bankruptcy, if anything, can only help them rebuild their credit in the long run. Yes, in most cases that I see, bankruptcy can actually improve credit by allowing the person a chance to start over after wiping out debts.
What most people don’t understand is that creditors look at several factors when evaluating a credit application and that whether or not a bankruptcy shows up on your report is only one of those factors.
For example, when buying a home, banks are not as concerned about it if your bankruptcy is at least 3 years old and all other credit characteristics are appropriate (good character, stable employment, amount of down payment, etc.). And if you are buying a car after bankruptcy, this is usually not a problem although in the beginning, you will obviously pay a higher interest rate or may even need a co-signor until such time you prove creditworthiness.
If you are in debt and your credit has suffered as a result, it may be better for you to just file bankruptcy and start over. Rebuilding your credit after bankruptcy is not as hard as you think and this is often a better strategy than not paying your bills and letting your credit continue to get worse every single month as you are reported to the credit bureaus by your creditors.
If you’ve been struggling with debt for a while now and nothing has changed, when are you going to get so sick and tired of your debt problems to finally do something about it? How about getting out of debt now before they year is over so that you can start fresh in the coming year?
Due to the pandemic, a lot of people who have lost their income have had no choice but to resort to using credit cards just to pay for living expenses like mortgage, rent, food, clothing, etc. They don’t want to but feel like their situation has left them with nothing else. You are not alone. Of course, this is not ideal, and the more debt you incur, the bigger the financial hole gets every month, making it harder and harder to get out.
If your creditors have allowed you to suspend payments temporarily, the temporary forbearance may allow a bit of relief for the moment but you know that this is not going to last and at some point, you need to make up those missed payments. This is the time to be pro-active and plan ahead instead of simply waiting to see what happens next. Because if you wait too long and not do anything until you have a bigger financial mess, it is likely that you will have fewer choices. This is important especially if you own a home and other assets that my be in danger of being lost.
For a free attorney consultation regarding how you can get out of debt with or without filing for bankruptcy, call Toll-Free 1-866-477-7772 to schedule an appointment.
NOTE: Due to the virus lockdown, I am currently offering consultations via phone or video. Please call the office to schedule your appointment with me. Questions? Email me at email@example.com.
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None of the information herein is intended to give legal advice for any specific situation. Atty. Ray Bulaon has successfully helped over 5,000 clients in getting out of debt. For a free attorney evaluation of your situation, please call RJB Law Offices at TOLL FREE 1-866-477-7772.