Are your bills mounting up higher then you ever imagined? Are you living day to day, and paycheck to paycheck? Do you find yourself worrying constantly about your finances? Maybe even you and your spouse are arguing due to the stress of your debt.
When debt becomes overwhelming, many people consider filing for bankruptcy. Often, people decide not to seek any legal advice due to embarrassment associated with bankruptcy. Some feel that filing is a sign of failure, but in reality, it can be a turning point to a new start.
One option to choose when trying to improve your personal finances is a debt relief program. Many debt relief programs are associated with a credit counseling service. These such programs can be beneficial for many debtors. Do consider that even though an organization is a nonprofit organization, there will usually be fees charged to cover administration costs. Also, depending on your personal circumstances, a bank may look at you for a loan quicker after filing and completing a bankruptcy, than after a debt consolidation plan. This information was explained to me by a local loan officer. A lending agency considers someone at less risk to them for defaulting on a loan soon after completing a bankruptcy because there are laws restricting consumers from a repeat filing for a period of time. After completing a debt relief program, the lender does not have the same legal protection.
If you are considering bankruptcy, seek legal advice. Typically, the consultation is free. It is completely confidential. You will probably be pleasantly surprised at how the process goes.
Unlike what I was expecting, I was treated with the utmost respect during the entire legal process. My husband and I both found the process to be much simpler than what we had expected. There were no big, burly men coming to cart off my couch.
My husband and I felt very burdened by our debt. We also knew we were obligated to pay. Upon discussing this with our lawyer, we chose an option of a repayment plan for our creditors.
Bankruptcy does affect your credit. During and shortly after the completion of the bankruptcy, your credit score will go down. But, if you are in enough financial trouble to benefit from filing, your credit score probably already is not quite where you would like it. About two to three years after your completed bankruptcy, your credit score will again improve. As you make timely payments and reestablish your credit, you can radically improve your financial standing.
After the process is over, the relief you will feel is tremendous! Of course, you will need to be certain to responsibly pay your bills. Also, you may need to cautiously consider financial decisions, but you will be able to breathe again. You should have enough money a month for necessities. This may not have been possible before you filed.
The lower level of stress is priceless. For me, filing bankruptcy was a turning point to a greater financial future. With less debt, the stress level in our home decreased. Bankruptcy can be a positive event in someone’s life.
If debt is bringing you down, seek legal advice and find out if bankruptcy is right for you.