Debt just seems to be a part of life for most people. But it shouldn’t be. And overwhelming debt that makes it hard to pay for your other needs is most certainly not “just a part of life,” nor is having so much unpaid debt that you are constantly being hounded by creditors, to the point that you don’t even want to pick up the phone.
You don’t have to let debt derail your life. Bankruptcy is a great option for many people to get their lives back on track after struggling for too long with debt. You will need to talk with a Gilbert bankruptcy attorney to know whether bankruptcy is the right option for you, but here are some things you should consider when weighing your options:
The Likely Plan A
Many people who are mired in debt and who want to do something about it – rather than just ignoring it and living with bad credit – will likely have a primary plan that involves paying back the debt over time. They may pay just the minimum on their credit cards, or they may pay a little extra. The problem with this plan is that they never make any real gains. The interest adds up so quickly that it’s like those monthly payments take nothing off the balance. And when people are putting all they have into paying back their credit cards, they are likely continuing to add to the balance by buying the things that money would have purchased. Meanwhile, the credit cards remain maxed out, bringing down the credit score and keeping it down month after month and year after year.
Another popular plan that people have to deal with their debt is to get a loan to pay it all off and then pay one payment toward the loan. Again, there are problems with this plan. The loan likely comes with a very high interest rate and a short repayment period, which means that many people will still be running out of money each month to meet their needs, and they’ll be turning to credit cards to make up the gap. Over time, they find that they have high credit card balances in addition to an expensive loan.
Adopting a Plan B
Too many people put off filing for bankruptcy because they worry about the financial impact. Unfortunately, they end up causing even more harm to their credit by trying to pay it off themselves using the previously mentioned methods. By sticking to a plan that doesn’t work, they cause themselves greater harm.
Adopting Plan B and filing for bankruptcy in Gilbert can help you get back on firm financial footing much faster. Yes, there will be the initial blow to your credit with your bankruptcy discharge, but you will clear up the money for your daily needs, and you will get rid of the debts that were weighing down your score. If you file for Chapter 7 bankruptcy, you will have a clean slate. So long as you don’t take on new credit or pay your bills late, your credit score will start recovering quickly. You’ll even be able to qualify for prime mortgage loans in two years. If you file for Chapter 13 bankruptcy, you’ll bring your accounts current and can even save your house from foreclosure, which can protect your credit also.
Never be afraid to give up on your Plan A when it is not working for you. Being adaptable and making the changes you need to make quickly can bring you results faster. By filing for Gilbert bankruptcy, you may get the debt relief you need to start living within your means again and even saving money, strengthening your finances and rebuilding your life. Talk to a bankruptcy lawyer about the options and how bankruptcy might help you get the fresh start you need.
Gilbert Bankruptcy Lawyers are ready to help you learn how bankruptcy can bring you needed debt relief. Our experienced attorneys will review your financial circumstances and help you understand whether Chapter 7 bankruptcy or Chapter 13 bankruptcy would give you the maximum benefits. We’ll guide you through every stage of the process with compassion and care. Call our bankruptcy law office in Gilbert today to schedule a consultation.
Gilbert Bankruptcy Lawyers