There is a great debate that has been going on for years as to whether credit repair or bankruptcy is the better choice. When you’re dealing with financial stress, it might seem like a good idea to take one route or another based on what seems “easier” or which you get help with first—that desperation isn’t going to serve you well, though.
You really need to take the time to compare your options and when it comes to the great debate of credit repair versus bankruptcy, the answer might surprise you.
Credit Repair Is Not Guaranteed
While taking the slower path of repairing your credit might seem less drastic than filing bankruptcy, it’s not necessarily the best choice. First of all, there’s no guarantee that creditors will negotiate with you or help you resolve your debts. You can ask, and you can get people to help along the way, but you may end up having to pay the full debt and they may still charge you interest in the meantime.
Credit repair is okay for those who have minimal financial debts and can fathom coming up with a plan to repay them. If you’re in a position where you already feel overwhelmed or can’t even imagine being able to repay them in your lifetime, credit repair can seem like a mountain that you will never climb. Bankruptcy, on the other hand, provides a swifter and more definite relief.
When you file for bankruptcy, you’ll enlist the assistance of a bankruptcy lawyer. Their rates are nominal compared to what they’re saving you, so don’t worry about that. These people also understand that you’re in a financial pinch and they will be willing to work with you to ensure that you get the help you need.
Bankruptcy also gives you the chance to wipe your slate clean, all at once, and start fresh. Instead of spending months trying to track down and pay off all your debts, or juggle a bunch of consolidated payments that are bigger than you anticipated, your debts will all be written off once the bankruptcy has been finalized in court. There are some debts and obligations that can’t be included in the bankruptcy, so you’ll need to work with an attorney who can help you decide on the best course of action.
Isn’t It Hard?
There are a lot of rumors out there that bankruptcy filing is a lot harder than it is. When you hire a lawyer, they will file all of the necessary paperwork and advise you on what they need, which usually includes financial statements, pay stubs, bills, and other personal identification so that they can give everything over to the courts. If anything else is required, they will let you know. Then, they will submit everything to the court and file for a hearing date, which will be assigned a couple of months out in most cases.
At the hearing, the judge will hear the case, review the paperwork, and then grant the bankruptcy filing if deemed fit—and in most cases, it is deemed to be the best option.
Bankruptcy often gets a bad reputation, but it can be more useful than you think. It may do slightly more to negatively impact your credit at first, but it will be quicker and easier to rebuild than if you’re trying to dig out with credit repair. Considering that the average bankruptcy is completed within six months and credit repair plans can sometimes take years to pay off, it’s easy to see why many people actually consider bankruptcy once they get the facts. Talk to a lawyer today and find out what’s best for your financial situation.
Fair Fee Legal Services
8665 South Eastern Avenue, Suite 101
Las Vegas, Nevada 89123