Life today comes with many financial challenges that were not common just a couple decades ago. As the cost of living, healthcare, and education continue to outpace the rise in income, this challenge will only continue to grow. Luckily, it’s not all hopeless, the law has created ways for people to stay in control of their financial future.
One great thing that you could do to restructure your finances is to declare bankruptcy. While there is a negative stigma and lasting impact on your financial life for a few years, there are several advantages to declaring bankruptcy.
Improve Credit Over Time
If you decide to declare bankruptcy, your credit score will be hurt initially. However, if your credit score is already damaged by past due payments, declaring bankruptcy could be useful for it in the long run. After ten years, the bankruptcy is cleared from your history, and your score will shoot up as long as you continue to stay current with other payments.
Get Rid of Debt
Bankruptcy is one of the most favorable ways to get rid of your debts. If you file Chapter 7, you will go through the full court process. It seems intimidating, but a lawyer can help you get debts restructured in a way that works for you. Student loans and tax debts won’t be expunged from your record, but outstanding credit balances will. If not, you could have them altered in a format that will allow you to repay your debt over an extended period.
Stop Harassing Calls
If you have fallen behind on your bill payments, creditors will likely be unrelenting in their collection efforts. In some situations, this can include getting intimidating calls all hours of the night and while you’re at work. If you would like these to stop, you could either pay off the balance or declare bankruptcy. Once you claim either Chapter 7 or Chapter 13, you will receive a notification immediately, and they will no longer be able to contact you.
Keep Your Privacy
Finally, when you declare bankruptcy, you will not have to worry about other people finding out. When you file bankruptcy, there is no public record. The only people who will know are those obligated to look at your credit score for the next few years allowing you to be able to keep your financial matters to yourself.
If you’re concerned about the bankruptcy process at all or are considering pursuing bankruptcy, reach out to a local bankruptcy attorney who can make you aware of your options. The Louisiana bankruptcy attorneys at E. Orum Young Law are highly skilled lawyers who are passionate about helping individuals pursue financial freedom through bankruptcy. With over 20,000 cases managed, we’ve filed the most bankruptcies in Northeast Louisiana and can help you restore your credit through bankruptcy. Contact us today for a free case evaluation. Our Trial Guarantee ensures that we will take your case to trial per your request.