Coming to Terms With Bankruptcy

For most people, the thought of filing for bankruptcy weighs heavily when considering debt relief options. With all of the questions and unknown aspects, most people are falsely intimidated by bankruptcy. When you have tried other options such as debt consolidation loans, borrowing money from banks or family, paying monthly bills with your credit cards and you are still overwhelmed by debt you may want to consider bankruptcy seriously. One of the first steps towards making a solid financial decision is to know what to expect from the process.

Credit Report

Filing bankruptcy either eliminates or significantly reduces your debts. It also prevents derogatory information such as delinquent account information from continuing to appear on your credit report. Although a bankruptcy filing can stay on your credit report for up to ten years. However, consider the alternative. Your credit score has probably already dropped considerably with late payments and failure to pay debts, so filing for bankruptcy can actually improve your credit score in time.

It Costs Money to File For Bankruptcy

It costs money for the court to process your paperwork, as well as fees for required debtor’s education and credit counseling courses. Additionally, hiring an attorney comes with some fees. However, most attorneys have payment plans or ways to help you spread out your payments. While, you can represent yourself during your filing process; the money you spend hiring an attorney can ensure maximum protection of your assets and property.

Credit Cards

Banks make loads of money from their credit cards, being one of the most profitable parts of their business. They encourage you with tempting offers in your mailbox or posters at your bank. When you get behind, the fee's and late charges continually add up until you find yourself unable to make even the minimum payments.

Filing bankruptcy can give you a fresh start, allowing you to get out from under the stress of the creditor's calls and being afraid of being homeless. Let an experienced Sacramento bankruptcy attorney help you choose the best course of action for you.

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