November 16, 2018
If you or your family is in serious financial trouble filing for bankruptcy may be a necessary step to reach a brighter financial future.
Your current situation may just be leading you no where financially. Making minimum payments on multiple debts probably means you will never catch up and pay them off. Filing for bankruptcy may enable you to get a fresh financial start, pay what you need to pay and move on. If you live in the Richmond, Chesterfield, Henrico and Harrisonburg areas Cravens & Noll may be able to help.
If you have a chronic medical condition that’s causing you pain and limiting your ability to function, as much as you may not like going to the doctor, it may be the only way to turn your health around.
It’s the same with finances. You’re in financial trouble but you may fear filing for bankruptcy will hurt you for the rest of your life. It’s just not true and it may be the step you need to get your financial health back on track.
You may fear filing for bankruptcy protection will prevent you from reestablishing your credit.
For many of our clients bankruptcy is the first, essential step to financial freedom. In the future you may have access to credit from reputable lenders you simply can’t get now. Re-building your credit may be easier if you file for bankruptcy than if you don’t.
A bankruptcy filing stays on your credit report for ten years and it may do some damage to your credit score initially but it will probably benefit you in the long run because,
- Defaults will stop. After your debts are discharged, they are no longer listed as delinquent or in default on your credit report.
- You may appear to be a better risk for creditors. Chapter 7 bankruptcy protection can only be sought every eight years. Since this option will be foreclosed for a time many creditors will see you as a better risk.
- Start your new, post-bankruptcy, financial life by building small. Creditors may see you as a good risk and will offer you credit cards and other types of credit with modest limits. By accepting a few of these credit lines and keeping your payments current, you can start with small, manageable steps to rebuild your credit. Your limits should increase and better rates should be offered over time.
- Keep these credit cards and lines of credit active and regularly paid. Use them once a month instead of using cash or check for less expensive items. Pay your $12 lunch bill with your credit card then make an electronic payment for the $12 when you get back home.
- Build an emergency reserve as best you can. This way if your income is interrupted or there’s an unexpected, high bill for medical care or home or auto repair, you’ll be able to handle it while being able to maintain your other payments.
- Stay away from predatory-lending scams and payday loans. Predatory lenders target bankruptcy filers and charge them exorbitant fees for borrowing money. Payday loans allow consumers postdate a check for the amount of the loan plus the fees for taking it. You could end up paying as much as 400% interest with a payday loan.
If you find yourself in a financial hole, you need to stop digging deeper and start thinking about whether bankruptcy might be right for you.
We want you to have the information you need to make sound decisions as you fight your way out of debilitating debt. If you live in the Richmond, Chesterfield, Henrico and Harrisonburg areas call us at 804-330-9220 or contact us online to schedule an initial consultation.