Filing for bankruptcy may be the best option for some individuals, but not for everyone. If you are not sure what to do to repay your debts, then make sure to contact our bankruptcy lawyer in Sherman Oaks.
Some people will consider bankruptcy as the end of the world. However, there are people that come out of it in great shape. For one, it stops debt collectors from calling you. It also halts any lawsuits and wage garnishments. Most of all, it erases your debt. In addition, it saves your home from foreclosure It can also help your credit scores, too.
Bankruptcy Lawyer in Sherman Oaks Advises on Bankruptcy
Indeed, scoring experts will tell you not to file for bankruptcy because it will affect your scores. But, this is not always true.
If you have been struggling for so long with your overwhelming debt, your credit could be damaged when you file for bankruptcy. When you file, your scores will rise instead of falling. Once the debt is erased, your score will go up even more.
In a way, you are way better off than not filing. It can be a great way for you to recover your finances. Then again, your case may be different.
That’s why it is advisable that you talk to a bankruptcy lawyer to know your options. As mentioned earlier, bankruptcy is not always the right answer for everyone. Some methods might offer more help than bankruptcy.
How Soon Can You Increase Your Score?
Before filing, your credit score is relatively low. But it will rise steadily after filing. The average credit score for filing is 538.20. When your case is discharged, the score can go up to 620.3.
When you file for chapter 13, it requires up to three years of the repayment plan. Once completed, you will see your score rising to 610.8.
But, the credit score is just one of the reasons you may consider filing. As mentioned earlier, filing can end your collection nightmare.
When you are in great debt, your financial troubles will get worse. The balances in collections will just grow. But if you file for bankruptcy, you will benefit from the automatic stay that can stop all collection efforts, like wage garnishment and lawsuits.
Furthermore, you are free from paying some debts, like credit card debt, personal loans, past-due rent, business debts, and many others.
However, you must also be aware that some debts cannot be erased, like tax debt and child support. Regarding your loan debt, it is rare that it will be erased. However, if your tax debt is 3 or more years old it may be dischargeable in bankruptcy.
Then again, if you can eliminate some of your debts, you are giving more room to help you repay your other debts. It is still a win-win situation.
In some cases, though, filing for bankruptcy is the last option. To know what method to use to help you repay your debts, you should ask our bankruptcy lawyer at the Tenina Law office. We can recommend some ways to help you pay your bills. You may also opt for a debt relief solution.
To consult with our bankruptcy lawyer in Sherman Oaks, contact: (213) 596-0265.