Want Good Credit? Think Bankruptcy!

If your credit is already messed up…then the first step to rebuilding credit worthiness is to get debt free. You can do it without filing bankruptcy, but how long will it take you to do it on your own? If you can’t do it on your own in a reasonable period of time, then you need to consider bankruptcy. Call me for a Free Initial Consultation at 210-930-7000, and we’ll go over all your options.

If your credit is messed up and you can’t pay all of your bills, then your credit worthiness is declining with each passing month of unpaid bills. If that’s the case for you, then it’s easy to see that bankruptcy can only improve your situation.

If you believe that there is a chance that you can get debt free on your own, then it’s not so easy to see how bankruptcy can help you to improve your credit worthiness. Look at this diagram, and make that determination for yourself:

WHAT SHOULD WE DO? Do it on our own? File a debt consolidation plan under Chapter 13? Consider how two people in your same position might end up 5 years later.

	Person 1 Tried to take care of the debt ON HIS OWN	Person 2 Used the help of a Chapter 13 BK DEBT CONSOLIDATION PLAN
Year 1	Income - Living Expenses = Disposable Income è Pay Debt	Income - Living Expenses = Disp. Inc. è Pay Plan Payment to T
Year 2	Late Payments? Over-Limit Fees? Missed Payments? High Interest?	No more interest or fees on credit cards.
Year 3	Late Payments? Over-Limit Fees? Missed Payments? High Interest?
Year 4	Judgment? Garnishment? Repossession? Foreclosure?	Stops legal proceedings.
Year 5	IRS Form 1099 For cancellation of debt?	Eliminates risk of receiving a Form 1099 for cancellation of debt.
	Lots of debt remaining?	Debt free! (in regard to debts in the plan, except student loans)

 

Answer these questions to determine the credit worthiness 5 years from now for the two persons in the example above:

Who is in a better position to repay a debt? Person 1 or Person 2?

Who has more money for a down payment? Person 1 or Person 2?

Who has more money at the end of the month? Person 1 or Person 2?

Person 2 filed BK five years ago, but does Person 1 have any negative credit marks in the past 12 –24 months? Does Person 1 have any outstanding judgments?

If you’re going to have lots of debt remaining if you try to get out of debt on your own, then perhaps you need to consider bankruptcy as an alternative.

Call me at 210-930-7000 today for a FREE Debt Consultation.

Find out what filing bankruptcy can do for you.

You have nothing to lose because the consultation is FREE.

Just call 210-930-7000.

Don’t lose another minute on the road to rebuilding your credit.

Call Today!