Rebuilding your credit — Bankruptcy can help
If because of life changes divorce, loss of income, or major medical, your perfect credit might now be bad credit. Creditors don’t really care what happened they want their money. They can call you everyday or even sue you. The chance of them forgetting about the debt “not going to happen”.
Now that this has happened trying to put together a work out plan to pay them is not very easy. They will not stop the interest or late fees and at 30 percent interest rate you will never pay the debt back.
Credit card counseling centers all say we can make the creditors reduce the interest rate and the minimum payments. The creditors do not have to do anything, they will take your money but at the end of the plan you still owe them money.
A bankruptcy is federal law the creditors do not have a choice. Either the debts can be discharged in a chapter 7 or pay something through a chapter 13 because there is disposable income or assets. The trustee decides how much you will pay based on the disposable income or assets not the creditors.
After the discharge of the bankruptcy now you can start rebuilding your credit. In the case if the chapter 7 was filed you could have new credit cards in as little as six months or buying a home in a year. This is because you dealt with all the creditors at once, no other method will do that. This is why the term Fresh start is used.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
