Filing for bankruptcy can place a significant amount of strain on everything from your finances to your relationships. However, it is important to cope with bankruptcy positively and keep in mind that it is merely a legal action designed to provide you with a financial fresh start. With more than 1.5 million non-business filings throughout the last year alone, many are choosing bankruptcy over lifelong debt. If you are considering filing with the aid of a licensed bankruptcy attorney, then keep these items in mind:
1. Bankruptcy Addresses Your Debt.- By taking the initiative and filing for Chapter 7 or Chapter 13 bankruptcy, you are addressing your debt in a proactive and legal manner. Consistently defaulting on payments or moving around your existing debts could eventually result in foreclosure, liens, and repossessions—all of which could have a bigger impact on your credit score than bankruptcy will. More and more people are finding themselves in overwhelming debt due to a depreciated housing market, limited credit opportunities, and inflated interest rates. For many, bankruptcy is one of the few options left to legally address their debt, avoid prosecution, and continue living their lives.
2. Bankruptcy Is Only Temporary.- While a bankruptcy will remain on your credit score for a set amount of time—seven years for Chapter 7 filings, ten years for Chapter 13 filings—it is important to remember that its significance gradually diminishes. This allows you to steadily rebuild your credit and reestablish financial stability without the constant pressure of debt hanging over your head.
Our highly qualified team of bankruptcy lawyers here at Cutler & Associates, Ltd. can provide you with the assistance and guidance that you need to avoid the worst consequences of a Chapter 7 or Chapter 13 bankruptcy. Our BBB accreditation and outstanding customer service record proves our commitment to providing the best bankruptcy attorney services in Chicago.