Many Americans are facing financial uncertainty due to the Covid-19 pandemic. If you are facing such uncertainty, Bankruptcy may offer you relief with the help of https://www.lawyersforchrist.com/ lawyers. Bankruptcy allows many people to write off their outstanding credit card and other unsecured debts, such as unpaid medical bills. Additionally, it stops nearly all forms of collection efforts, including those stemming from ongoing litigation. Also, if your house is in foreclosure, filing Bankruptcy will postpone the Trustee’s Sale of your home.
Some people feel the outdated stigma surrounding Bankruptcy remains. Hence, hiring the right lawyer for your bankruptcy is must and should. Unsecured creditors also may frown on people filing bankruptcy, particularly Chapter 7 Bankruptcy, which does not involve a repayment plan, because they usually will not get paid.
The main reason many people give for not filing Bankruptcy is that they do not want to hurt their credit rating and also not able to get acquaintance with best attorney like New Bedford bankruptcies who can solve your bankruptcy very smoothly. One of our clients, for example, was in dire financial straits. His house was being foreclosed, his car recently had been repossessed, he was being sued by several credit card companies, and he already had several judgments against him for defaulted debts.
After reviewing his assets, income, and liabilities, it was clear he qualified for Chapter 7 Bankruptcy, which was an easy way to resolve his pressing financial issues. Still, he bristled at filing Bankruptcy because he did not want to “destroy” his credit. As we explained to him, though, if you are delinquent on paying your debts, your credit already has been negatively affected, and you cannot begin to rebuild your credit until your financial issues have been resolved. Bankruptcy is often the quickest way to do so.
Although your credit rating will be negatively affected when you file Bankruptcy, from the date you file, your credit will begin to improve, as long as you timely pay your remaining debts going forward. If you do, it usually takes approximately three years for your credit score to “recover.” During that period, you may have trouble obtaining financing to buy a new home, but it normally takes at least that long before you are in a position to purchase a new home anyway.
Another common misconception about Bankruptcy is that you lose many of your assets, such as your car, furniture, or jewelry. Most filers, however, do not have to surrender any assets as long as they fall within the permitted exemptions, which are fairly generous.
We generally advise clients not to wait until the last minute to file Bankruptcy. The key is to prepare. Certain debts, particularly those that you incurred within 90 days of filing, may be “non-dischargeable,” which means you have to pay them back. Moreover, if you made “preferential payments” (paying back someone you know, for example), the Bankruptcy Trustee may require the person you paid to give the money back. Likewise, any payments you made to family members within the past year, or gifts above a certain amount, may have to be repaid if the Bankruptcy Trustee determines they are “preferences.”
If you are having financial difficulties and are struggling to manage your debts, do not despair. Call The Carroll Law Firm, PLC at (623) 551-9366 and mention that you read this blog for a free debt relief consultation.
