Can I Financially Recover After Bankruptcy?
Too many people rule out bankruptcy because of the misconception that bankruptcy does irreparable damage to credit ratings and other aspects of financial life. As a result, people continue to struggle with the burden of overwhelming debt. The truth is, filing bankruptcy shows you are taking charge of your finances and have begun taking steps to improve your situation.
Edwin L Feld has been helping people get debt relief in Chicago and throughout Cook County since 1984. The attorneys and staff at Edwin L Feld & Associates are patient and empathetic people, working closely with each client to create plans that eliminate debt, stop creditor harassment and help people recover financially after bankruptcy. We have put thousands of clients back on solid financial footing, and we will work diligently to do the same for you.Call 888-645 HELP or email us to get started.
Will Bankruptcy Affect My Credit Rating?
Credit scores are perhaps the most important — and most mysterious — part of a person's financial picture. There are multiple credit reporting agencies, each with their own scoring system, which makes it hard for people to know exactly where they stand. If you are in a position where bankruptcy is a realistic option, however, either your credit rating has already been impacted or you are in a financial position where you believe you can no longer continue to struggle to make your minimum payment.
It is true that filing for bankruptcy, whether Chapter 7 or Chapter 13, will have a negative impact on your credit, but you can build it back up over time. The relief provided by bankruptcy generally outweighs the need to maintain your credit score when your efforts to pay all your bills on time results in substantial anxiety and stress for you and your family.
Are There Steps I Can Take To Improve My Finances?
Chapter 7 wipes out most types of debt, which lowers your debt-to-income ratio and helps improve credit. Chapter 13 sets you up with a manageable repayment plan that helps you rebuild credit by establishing a pattern of regular payments and reducing debt.
During and after bankruptcy, there are things you can do that will help you recover financially in the long term:
- Do your best to pay down debt: Though difficult, this is critical. Establishing patterns of regular, on-time payments is fundamental to your financial health.
- Be selective about using credit: If you have the opportunity and desire to obtain new credit, please be careful not to put yourself in the same position that you were in before.It may be in your best interest to keep the line of credit and monthly payments low. Do not use more credit than you can afford and pay close attention to the Credit Card Minimum Payment Warnings that appear on credit card applications and statements Those disclosures are required by law to protect you.
With guidance from the Chicago bankruptcy attorneys at Edwin L Feld & Associates, you can take control of your finances again and move forward into a brighter future. We will take your case through the bankruptcy court and be there to give you practical advice along the way.
For Answers to More Frequently Asked Bankruptcy Questions in Chicago
With eight office locations in the Greater Chicagoland area, we are available to answer your questions and give you the advice you are looking for. To arrange a free consultation with a lawyer, please call 888-645-4357 or send us an email.