Financial troubles can happen to just about anyone in any income bracket. Many people are able to stabilize their finances without seriously damaging their credit. Creditors, such as mortgage lenders and credit card companies, will often work with customers who have temporary financial setbacks. For those who have money troubles that are expected to last more than a couple of months, bankruptcy may be the best option.
File Sooner Rather Than Later
Outstanding debt won’t go away on its own no matter how much as person ignores it. When there’s no way to pay the bills, it’s best to consult a bankruptcy lawyer in Lawrence, KS right away. A lawyer could advise a client about the ideal route to take to get out of their current financial situation. In some cases, the best option is not bankruptcy. However, people with a lot of debt they can’t pay shouldn’t dismiss bankruptcy just because of the bad stigma attached to it.
Recovering from Bankruptcy
After a bankruptcy lawyer in Lawrence, KS helps a client get their debts discharged, it’s up to the client to restore their credit rating. This is going to take some time, but most people don’t have to wait until the bankruptcy drops off their credit report to buy a car, get a credit card, and even purchase a home. It’s important to have a plan in place for restoring credit prior to even filing for bankruptcy. Clients may start by getting a secured credit card and making payments on time. After about six months of paying bills consistently, they will start to see their credit score increase and more options become available to them.
People in debt have several options. They can set up a payment plan with a creditor on their own, work out a settlement agreement, or ignore the debts until the creditor sues. However, when a person has more debt than income and cannot reasonably pay their bills, it may make sense to contact Business Name and have a serious conversation about filing for bankruptcy protection. The filing will be on a person’s credit report for up to ten years, but it doesn’t have to stop them from moving on with their life after bankruptcy.
