Credit and Debt: What Do You Do?
Like most people, you have probably seen advertisements on television for debt management and debt consolidation programs. You may be wondering if these are valid alternatives to bankruptcy. Certainly there are legitimate credit counseling agencies out there. However, we have seen far too many individuals fall prey to fraudulent and damaging schemes. These people ultimately end up worse than they started and, in the end, they may file for bankruptcy anyway.
It is only logical to consider all of your options. Just make certain that you consider the overall effectiveness of each option. The reality is that credit counseling services simply do not have any laws on their side that allow them to eliminate debt on your behalf. Filing bankruptcy is the only truly effective legal way to eliminate debt in most cases.
Discuss your case with a bankruptcy attorney at Marrs & Terry, PLLC. We can talk to you about bankruptcy and its alternatives, as well as how all of your options will impact your current and future financial picture. Contact us to schedule a consultation. Our services are available to individuals in Flint, Genesee County and the surrounding areas in Michigan.
Required Credit Counseling
It is important to understand the difference between the credit counseling companies that advertise on television and legitimate credit counseling agencies that may actually be able to help you. Prior to filing bankruptcy, you are actually required to complete legitimate credit counseling, as well as a personal financial management course. We can guide you through these requirements, making sure you are getting sound advice along the way.
Your Credit After Bankruptcy
- Chapter 7 wipes your credit clean. After the process is complete, you will be rebuilding your credit from scratch.
- Chapter 13 involves a repayment plan. This serves as a credit record, creating a new and positive payment history that can help you get credit in the future. Before accepting an application for a new loan, lenders typically like to see 12 months of consistent payment history.
Not surprisingly, rebuilding credit is tied closely to your income. If you have a regular income and you are resolving your debt, you could find that your credit rebounds within a year after bankruptcy.
Second opinions are always a good idea if you have been told you do not qualify for bankruptcy. Everyone facing debt is encouraged to get in touch with our lawyers to take action. Contact Marrs & Terry, PLLC online or call us toll free at 866-665-8095.
