Bankruptcy is very often misunderstood and, as a result, you may be afraid to file for bankruptcy even when your debt problems have become out-of-control. Before you waste money or put your financial future at risk by cashing in retirement accounts or losing your home, you should speak with a Baldwin Park bankruptcy attorney to learn more about bankruptcy and how it can potentially help you.
The Truth About Filing for Bankruptcy
While many people fear a bankruptcy filing because they are worried they'll never be able to get a credit card or buy a house or car again, the reality is that bankruptcy can be a good solution to credit and financial problems, rather than a hindrance. In some instances if you are having late payments reported by multiple creditors every single month, bankruptcy will improve your credit score right after your filing goes through.
In other instances, bankruptcy will allow you to escape from a debt burden but will cause a temporary decline in your credit score as many people fear. Even in these cases, you should be able to obtain secured credit shortly after filing and then, with responsible borrowing behavior, be able to get regular credit cards, car loans or even a home mortgage within just a few short years.
A bankruptcy filing also doesn't mean that you will lose your house or your car or other assets either. There are different chapters of bankruptcy protection out there and some of them- such as chapter 13 and chapter 11- don't involve giving up any of your assets at all. In fact, in some cases, you can actually save your house or car by filing for bankruptcy protection as the filing will put an automatic stay into place and require creditors to stop repossession and other collections activities.
Filing for Baldwin Park Bankruptcy
Filing for bankruptcy will not only help you to start to turn your credit situation around, but will also help you to get a handle on your monthly payments so you can start using your money more effectively to accomplish your financial goals. When you file for chapter 7, you can eliminate your debts after your non-exempt assets are sold, so your money will once again be yours instead of simply going to creditors each month. With both chapter 11 and 13, your payments will be renegotiated and restructured to become more affordable, again helping you to get more control over your finances.
In all of these examples, bankruptcy gives you back your financial freedom and allows you to avoid sending money to debt that you cannot reasonably repay. It is the best choice and the wisest financial decision you can make.
To understand if bankruptcy will benefit you and to learn more about what type of bankruptcy is right for you, contact a Baldwin park bankruptcy attorney today. Our experienced bankruptcy attorneys also provide service to those looking for a San Pedro, Sylman, Van Nuys, Canoga Park and Simi Valley bankruptcy lawyer.