Bankruptcy Can Help Rather Than Hurt Credit of Chicago Consumers
It's an age-old Catch-22. Some of us are so afraid that filing for bankruptcy will damage our credit that we avoid it at all costs - and in the process, we run their credit into the ground.
And the saddest part of the story? Bankruptcy might have saved - not ruined - our finances, say Chicago bankruptcy attorneys.
Think about it. When you're borrowing from family members just to pay the bills, are having your wages garnished at work and are at serious risk of foreclosure, you've got no credit to speak of. If you've got nothing to lose, why not give bankruptcy a try? Your credit score has nowhere to go but up.
Obviously the best solution would be the do-it-yourself approach - limit your spending so you can focus all your money on paying off debt. With less debt payments every month, you'll have more flexibility to pay the mortgage and your other bills. Problem is, not everyone can afford to cut money from an already tight budget.
That's the beauty of bankruptcy. If you're so deeply in debt that you can barely manage to make your minimum payments, bankruptcy can give you a second chance in the form of an affordable payment schedule. Depending on your financial situation, a bankruptcy plan may even be able to discharge debt. Meanwhile, a legal action called the automatic stay means bankruptcy can protect some of your assets - like your house.
Once you're on your way to debt-free finances, chances are creditors will start taking you seriously again. Yes, the bankruptcy will appear on your credit report for several years. But it's a myth that it will take that long to repair your credit. Bankruptcy shows creditors that you've been working hard to reduce your debt - and that alone can help your score. Many people who opt for bankruptcy have received loans immediately after filing.
Look at it this way. You can remain in debt - and continue to harm your credit - indefinitely. Or you can do something about it today. Why not try a free one-on-one debt analysis with a Chicago bankruptcy attorney? We'll show you how bankruptcy can help - not hurt - your financial future.