Bankruptcy is never an easy decision to make. Even if it seems like the only option however, there are advantages to filing for bankruptcy that can help you in the long run. Filing for bankruptcy does greatly impact your credit score, but it also offers a number of positive effects. To find out what bankruptcy can do for you and whether it is the solution that you should be considering, reach out to a bankruptcy lawyer about possible solutions and whether bankruptcy can be a suitable option. If you have any assets that you would like to preserve, such as a property, depending on the bankruptcy that you are filing for, it can come with several protections. There are several key things that you should know regarding the benefits of bankruptcy.
Eliminate unsecured debt
Filing for bankruptcy is recommended if you want to clear specific unsecured debt. If you have debt such as medical bills, credit card bills, car loans, and utility bills, you may be able to qualify for bankruptcy, as a skilled East Hartford, CT bankruptcy lawyer can explain. Declaring bankruptcy allows those debts to be wiped out so that you can start a clean slate. If you have no other options to manage your debt or your debt is too large, then bankruptcy may be advantageous for you.
Become more financially informed
Though filing for bankruptcy can involve many drawbacks, one of the benefits of declaring bankruptcy is that you can complete the process with a much better financial foundation. Debtors are required to complete a brief credit counseling course where they learn about core concepts such as creating a budget, building credit, and making smart financial decisions. One of the reasons that people experience debt issues is due to lack of education regarding debt management and financial resources. The credit counseling course will equip you with the knowledge to make better decisions in the future.
Gradually improve your credit score
It is critical to be aware that filing for bankruptcy will eventually enable you to rebuild credit. Bankruptcy significantly reduces your credit score, but it is temporary. The amount that your credit score is reduced depends on several factors such as how your credit is used, whether you have a large number of missed payments, and what kind of accounts that you have. However, you will have the opportunity to slowly build your credit back to a positive range again.
Bankruptcy can put you in a better position
Whether you are seriously considering bankruptcy as a viable option or just want to understand your debt relief options in general, a skilled bankruptcy lawyer like one from The Law Offices of Neil Crane will be able to offer further specialized assistance. Bankruptcy can seem like an intimidating experience, but with the guidance of a lawyer that you can trust to help you, you can come out of your dilemma in a much better position. People who file for bankruptcy eventually reach a more stable financial situation. For more information about available legal services that you can get, schedule a consultation with a lawyer now.