Ann Arbor Credit Counseling Attorneys

Ann Arbor and Jackson Michigan Debt Management Lawyers

What to Do About Credit and Debt

If you are like most people, you may be wondering whether you should first try a debt management or debt consolidation program as a bankruptcy alternative. While some programs are legitimate, we have seen far too many people spend months in such programs and still ultimately need to file for bankruptcy. We have also seen people fall victim to fraudulent debt consolidation schemes that just make the situation worse.

While it is natural to try a number of options, we suggest that you consider which option is going to be the most effective. If you have overwhelming debt or have experienced a loss of income, bankruptcy may be the only truly effective choice.

Talk to a bankruptcy lawyer at Marrs & Terry, PLLC about your specific financial situation. We can advise you whether you qualify for bankruptcy and can tell you how it will affect your current and future financial picture. Contact our law office to schedule a free consultation. We have six Michigan offices for your convenience: Ann Arbor and Jackson.

Required Credit Counseling

Under the bankruptcy code, you will be required to complete credit counseling with an approved agency before you file for bankruptcy. You must also complete a personal financial management course. These are not difficult. We can advise you on approved credit counseling agencies you can use.

Rebuilding Your Credit

  • Under Chapter 7, your credit is wiped clean. You will have to rebuild your credit just as you did when you began.
  • Under Chapter 13, your re-payment plan serves as a credit record, creating a new, positive payment history that will help you get credit in the future. Lenders like to see at least 12 months of a payment history before they will consider a new loan.

Income is the biggest factor in establishing credit again. If you have regular income and your debt problem is being resolved, your credit will most likely rebound within a year or so after bankruptcy.

Have you been told you don't qualify for bankruptcy? Talk with one of our experienced bankruptcy lawyers for a second opinion. Take action to change your financial future. Contact Marrs & Terry online or call us toll-free at 866-665-8095.