Chances are that if you ask multiple people what they feel is the best way to relieve debt, you will get a multitude of answers. Some may suggest stricter control over your finances, while others may suggest filing for bankruptcy, credit counseling, debt consolidation, or a bevy of other options. At the Law Office of Drake Ozment, a bankruptcy law firm in St. Lucie, Florida, Ozment has met some opposition regarding his idea that bankruptcy is definitely a viable option for managing debts. In particular, he says that scare tactics used by creditors are sometimes to blame.
The absolute last thing that creditors want you to do, Ozment says, is to file for bankruptcy. While for you bankruptcy signifies a fresh start and relief from your mounting debts, for creditors, bankruptcy means that, at best, they will only be paid a portion of the money they are owed. Additionally, they will never see payment for all of the late fees and interest rates they have likely tried to charge you with.
For this reason, many times, creditors will try to use your biggest concerns to prevent you from filing for bankruptcy. Specifically, Ozment says, companies target debtors by telling them that their credit will be ruined forever. However, if you take a minute to review the logic of this claim, you will discover that if you are already in debt far beyond what you can afford, then chances are that your credit is already petty bad. Furthermore, if nothing is done to rectify the problem, it will only get progressively worse. While a bankruptcy will appear on your credit report, it also gives you the opportunity to take out positive lines of credit and rebuild your credit score.
In addition to providing you with the means to build up a credit score that you can be proud of, bankruptcy significantly simplifies the process of repaying your debts as well. If you are eligible and decide to file for Chapter 7, within 90 days, the problems that you have been dealing with for months or even years will disappear. Otherwise, with Chapter 13, a trustee takes over the responsibility of distributing your income and assets to the institutions to which you still owe money.
It’s always best that before you make a final decision regarding how you plan to address your debts, that you seek out advice from multiple sources. And one of those resources should definitely be an experienced bankruptcy attorney in your area who can provide you with a realistic vision of how your financial standing may improve after filing.
This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Neither publication of this article nor your receipt of this article create an attorney-client relationship.