Before you begin the bankruptcy process, it’s important to understand a few helpful hints to make it a more painless process:
(1) Remember: You are not Alone.
Maybe you think of bankruptcy as something for “other people.” But the days of bankruptcy as a means of financial respite for the perpetually poor are no more: everyone from the solidly middle class to formerly wealthy Americans are being forced into bankruptcy more than ever before. Because of steady declines in real estate values, and rises in health care costs, credit card interest and unemployment in all sectors, more than 8% of bankruptcy filings in 2009 came from people who made over $60,000. So, begin by dispensing with any preconceived ideas of bankruptcy in lieu of a successful strategy for setting off on a sound path to personal financial freedom.
(2) Personal Bankruptcy Puts You in Control
While people who drown in debt remain at the mercy of their creditors, bankruptcy can actually be a better way to take control of your financial future. If you file for Chapter 13 bankruptcy, you play an integral role in determining how you’ll pay off your debt, including a trusty payment plan that works for you. Even Chapter 7 bankruptcy can buy precious time to halt creditor harassment, save money and plan your next best fiscal moves.
(3) Bankruptcy Can Be a Key to Better Credit
As counter-intuitive as it may seem, bankruptcy could potentially improve your credit scores in the long run. Obviously, the immediate effect of bankruptcy is a lowering of your credit scores. However, filing can be the better option for your long-term credit than enduring late payments on credit cards for years in an attempt to stave off what is more than likely inevitable: default. Because some 35% of your credit score is based on your payment past, it is vital to your financial future to avoid missed payments and establish new credit as soon, and as much, as possible. Even though bankruptcy stays on your credit report for 7 to 10 years, it does not necessarily follow that your credit score will be low for that entire time. If you take steps to rebuild after your bankruptcy, your FICO score can quickly be restored to where it was prior to your filing.
(4) With Bankruptcy, Timing is, in Fact, Everything
When you’re facing insolvency, timing can be especially important. And that’s also the reason it’s the best time to talk to a qualified bankruptcy lawyer. But just because you’ve consulted a lawyer does not necessary mean that bankruptcy is the next step. While it’s hard to believe, it is sometimes your best move to hold off on your filing until the worst of your financial situation is over. For example, if you are facing impending medical costs, you may want to wait to file until you’ve recovered fully before filing for bankruptcy, simply to avoid accruing more medical expenses during the process. In the alternative, some situations demand that you file sooner than later, such as if your car’s been repossessed and you need it back immediately. As a result, consulting a bankruptcy expert is your best bet to making your bankruptcy work for you.
(5) With Bankruptcy, You Never Have to Go it on Your Own
Bankruptcy isn’t a cakewalk, but you never have to go it alone. In fact, knowing a qualified bankruptcy attorney can also help you conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-888-234-4181, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.