Greensboro bankruptcy may be good for you
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Most people have a negative reaction to the word “bankruptcy” because they don’t understand what happens during the process. To some consumers, the idea of bankruptcy means you’ve hit rock bottom. In fact, it’s a great opportunity for a fresh start. Greensboro bankruptcy can stop a credit score free fall, put an end to aggressive debt collections, and allow you to get back on track. The benefits of bankruptcy almost always outweigh the costs.
Bankruptcy Will Drop Your Credit Score, but Then Raise It
If you’re behind on your bills, paying late, have maxed out credit cards, and have accounts in collection, your credit score is dropping every month. While the initial bankruptcy filing will drop your score down a bit further, it should immediately begin to rebound. The Federal Reserve found that those that choose bankruptcy have higher scores a few months after filing than those that muddled on with their bad debt.
Bankruptcy Will Stop Debt Collectors Cold in Their Tracks
For most Greensboro consumers that are deep in debt, debt collector harassment is a fact of everyday life. Dealing with debt collectors is stressful because some don’t play by the rules and make threats, call day and night or repetitively, and leave you with no peace of mind. As soon as you file, all that stops, and if debt collectors keep calling after you file, they can be fined for breaking the law and the money goes to you.
Bankruptcy Is Public Record, but Few Know
Because bankruptcy offers sweeping debt relief, it also comes with downsides. One of them is that your bankruptcy filing is a matter of public record. However, no one sticks up a sign in downtown Greensboro with a list of bankruptcy filers for everyone to see. The records are on a secured federal website that is not easily accessible to the public. Usually, no one knows you filed unless you tell them, but it’s possible.
Bankruptcy Blocks You From New Debt for Awhile
If you choose Chapter 13 for your Greensboro bankruptcy, you won’t be able to take on any new credit while you’re on your three-to-five-year repayment plan. That means if you need a new car, you can’t get a loan without the court’s permission. If you choose Chapter 7, you must wait awhile after the filing to be approved for a car loan or mortgage, but within a few months, you can start rebuilding your credit.
Bankruptcy Can Affect Your Assets and Equity
For those Greensboro consumers with a lot of equity in their home, Chapter 13 might be the better option. Chapter 7 is usually better for those that have little to no equity in their assets, but even so, up to $70k in home equity can be shielded for a couple filing together and $35k for an individual. If you’re behind on your mortgage and want to keep your home, Chapter 13 is usually better.
Bankruptcy May Affect Your Spouse's Debt Situation
If you choose to file individual bankruptcy without your spouse, your filing might affect them if you have joint debts or they’re a cosigner on any of your debt. If the debt in your marriage is mostly in one spouse’s name, filing individual bankruptcy might be more advantageous. If the debt is in both your names, filing together might offer a better outcome. Discuss your options with your bankruptcy lawyer.
Bankruptcy Represents a Fresh Financial Start
You may have seen ads for companies promising miraculous debt relief without filing bankruptcy. These promises are usually empty. Greensboro bankruptcy offers the greatest debt relief in the fastest time. Negotiating with creditors rarely results in great results and companies that promise they can get your debt under control usually charge high fees for minimal results.
To find out more about how Greensboro bankruptcy can reduce or eliminate your debt and give you a fresh financial start, contact the Law Offices of John T. Orcutt. Call 1-888-234-4181 now to schedule a free Greensboro bankruptcy consultation at one of our convenient locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro, Garner or Wilmington.