Lawyers are not always a Good Solution; lawyers often charge high fees to help individuals get out of debt. Credit repair clinics are available to assist individuals with debt relief, but only the desperate would consider these types of solutions. So, if this is not the solution for repairing credit, then what is? Many people who suffer from bad credit often wallow in a pond of self-pity believing there is no escape. Most people sit around waiting for the miracle that comes to their neighbor’s door to hit their door.
The fact is there are no miracles that happen unless someone takes the first step to eliminate the problem. We all suffer at times, and some of us more than others. It depends on the amount you owe, but for most of us getting out of debt is possible.
The disadvantage of Bankruptcy
The disadvantage of Bankruptcy is that you will have to give up some of your assets in most instances. Once you fill out the appropriate papers you will then go into an ‘automatic stay’ which stops all your creditors from contacting you. This means that the creditors cannot garnish money from your checks each month to apply toward the bills you owe. It also means that the creditors cannot deduct money from your checking, savings, money market accounts, and so on.
You are also protected temporarily since the consumers are not allowed to discontinue your electric or gas. The advantage of Bankruptcy is that you have a degree of control over all assets and income that are available once the bankruptcy is in motion. Some debts cannot be wiped out by filing Bankruptcy. Those debts include child support payments, college tuition loans, criminal fines, and costs, or other similar bills.
New laws for debtors
The problem with filing bankruptcy is that new laws are coming that will make it more difficult for debtors to file. The new laws in motion are nearly prohibiting debtors from finding a solution.
This is a good solution for building credit. If you missed car or home payments it is a solution to help you repair your credit. The downside with is that if you miss payments the courts have the right to change your plans. If the courts see that the delay is only temporary they may issue you a ‘grace period’ until you get back on track, otherwise, you might get a ‘hardship discharge,’ which means that your debts are dismissed.
The best solutions
The best solution then is finding a solution for the problem that won’t lead you into the courtrooms. This is only a headache since you will have to make court meetings, be in someone else’s control, and so on. The first step to repairing your credit and building a better future is to put some taps on your spending habits. Setting up a budget plan is a great start to credit repair without hitting the courts. Before long the law is going to make it virtually impossible for anyone to go to bankruptcy court, so it is time to get started now.
If you are not good at budgeting, there are Nonprofit Organizations that will help you set up a budget plan for little or no cost. Remember you are not alone, and there are people out there willing to help you get back on your feet. If you don’t want to bother someone else with a budget plan you could also purchase software programs that offer the tools for budgeting. Quicken and many other software programs have excellent spreadsheet programs, analyzing tools, and so on to get you on the road to budgeting your money to repair your credit.
Information in this email is for information purposes only. Always contact your lawyer if you need legal advice.