Chicago Bankruptcy Attorneys Question Big Bank Money Motives
Time and time again, I've watched friends, neighbors and co-workers choose to struggle with growing debt, decide to stop paying the bills and throw away their homes to foreclosure, all because they're saving bankruptcy as a "last resort." Why do I call these things a choice when it's obvious the ailing economy - something out of our control - is at play? Simple. Because bankruptcy is a no-fail way to stop all these things from happening.
Bankruptcy shouldn't be a last resort - it should be Plan A. Most people have it backwards. They try the stuff that doesn't work first, like denying they have a debt problem and thus doing nothing, or paying a debt settlement company, which actually adds to their debt. Had they filed for Chapter 13 first, they would have overcome their problems a long time ago - and saved money to boot. That doesn't sound like a last resort to me.
So why don't more folks consider bankruptcy? Rumors. They've heard it will stay on their credit report for 10 years. They're concerned about the "stigma" associated with bankruptcy (that's like saying there's a stigma about becoming financially viable - "How shameful! She actually pays her bills on time and doesn't worry about money, can you believe it?") And, just like back in high school (my school, anyway) the rumors are usually started by someone with an ulterior motive. It's the same in the finance world--in this case, big banks. You see, big banks want to keep us hooked on high-interest debt. Why? Because that's how they make their money! Our debt is their gain. To keep it that way, they'll do anything to hide the fact that bankruptcy works.
If you're still wondering whether bankruptcy could hurt your credit - or your image - think about it this way. You could keep damaging your credit score by not paying your mortgage, not paying your bills, and taking on more debt. Or you could file for bankruptcy, develop a much more affordable payment plan and clear your good name by eliminating debt for good.
And by the way, along with the debt, you'd also be rid of those sleepless nights spent worrying whether today's mail will bring a new set of bills or a foreclosure notice. Hmmm, what sounds like the smarter option to you?
And as for the rumor about your credit, keep in mind that most DebtStoppers clients get offered car loans, credit cards and even mortgages shortly after filing with one of our attorneys. The truth is, getting out of debt is your best shot at being able to afford the things you need. Want to find out if bankruptcy is right for you? Visit DebtStoppers online or set up a free one-on-one debt analysis. When you choose the only option that works, you literally have nothing to lose.