When a person finds themselves in over their heads, one of the best ways to start fresh is by considering bankruptcy, and a bankruptcy lawyer New London, CT, people depend on can help to carefully weigh whether this is the appropriate decision for you and your family. Deciding to file for bankruptcy is not one that is taken lightly. However, doing so may be a strategic financial decision when no other viable options are available. There are several reasons to consider bankruptcy. Moving forward with this decision can not only bring forth significant relief, but it can also help offer vast benefits for those struggling to cover their financial commitments. Although a person’s credit can take a hit after filing for bankruptcy, some steps can be taken to rebuild credit for future years. While it takes time, it’s possible to learn from prior mistakes and live a fiscally responsible life. When those considering bankruptcy seeks legal support from Eric Lindh Foster Law, LLC, they gain access to strategic counsel that can protect the client’s interests during bankruptcy proceedings.
Reasons People Consider Bankruptcy
When a person is determining whether they should file for bankruptcy, they often experience a great deal of shame. However, it’s not something to be shameful about. In 2020, more than 400,000 people filed for bankruptcy because it’s not uncommon for someone to find themselves in over their heads. Our bankruptcy lawyer in New London, CT, knows that it can be challenging to decide whether bankruptcy is ultimately the right option. If you are experiencing any of the following, it may be time to consider whether bankruptcy is the right next step:
- Loss of Employment
- Unexpected Medical Bills
- Spending More Than You Make
- Only Making Minimum Payments on Credit Cards
- A Decrease in Income
- Using Credit Cards for Living Expenses
- Credit Collectors are Calling
- You Are Missing Payments on Credit Cards
When facing any of these issues, it may seem impossible to catch up and get out from underneath mounting amounts of debt. Constantly shuffling debts and being unable to pay bills, auto loans, and mortgages can be stressful and terrifying. However, it may be possible to experience relief with bankruptcy.
Rebuilding Credit After Bankruptcy
One of the top concerns people who file for bankruptcy have is the impact it will have on their life moving forward and how they will rebuild their credit after bankruptcy. Be aware that if you are in a situation where you must file for bankruptcy, your credit has likely already taken a significant hit. After a person files for bankruptcy, their credit score will undoubtedly decrease. However, the most severe decreases are often seen in those who still have pretty decent credit. While bankruptcy will remain on a person’s credit report for 7-10 years, it’s essential not to delay in taking steps towards rebuilding credit. The process starts the moment a person’s debts are discharged. Start the process by doing the following:
- Regularly monitoring your credit report
- Paying bills on time
- Being fiscally responsible
- Not living beyond your means
- Considering a secured loan or credit card
- Considering having someone cosign on a loan
A debtor will slowly see their credit score rebound by practicing good financial health. With bankruptcy, it’s possible to seek financial relief and ultimately receive a fresh start. With our team from Eric Lindh Foster Law, LLC, we can help with weighing the options, initiating the process, and protecting the interests of our clients- call today.