Oftentimes, consumers who find themselves buried in debt try their best to pay that debt off rather than filing for bankruptcy. However, in some cases, the potential for causing additional long-term damage to your credit should give you reason to consult with a bankruptcy lawyer in Kennesaw.
Why is it better to file bankruptcy?
One of the many things that occur when a bankruptcy is discharged is that your debts are immediately showing paid in full on your credit report. While it is true that a bankruptcy is a blemish on your credit report, it will not stay there forever. However, if you reorganize your debt on your own and work with a credit counseling agency, you are going to be spending more money, take a long time to repay your debts and in the long-run weaken your credit score. Keep in mind, when you pay off your debt, you will likely see a slight spike in your overall credit rating, even though you have a bankruptcy filing.
Stress reduction and savings enhancement
Nearly any bankruptcy attorney in Kennesaw will tell you how stressful many of their clients find the bankruptcy process. However, the fact is that the stress a consumer endures during a bankruptcy is relatively short-lived when compared to what happens when you owe thousands of dollars in credit card debt, medical debt or other debt that collectors are calling you about regularly. Putting your debt behind you is far less stressful than trying to meet repayment plans that may be onerous and paying a monthly fee to a third-party for managing those payments.
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Most of us are aware of the importance of putting money aside for our retirement. Naturally, the more debt we have, the less we have to save. Stop and consider what happens when you file bankruptcy: You no longer have the burden of monthly debt payments that you would have under a debt consolidation plan or a debt management plan. This means rather than sending money away every month to pay old debt, you can start adding to your retirement account.
Time considerations and bankruptcy
Changes in your life can have an impact on bankruptcy. For example, we move forward in our careers and get raises which could mean you no longer meet the requirements of Chapter 7 bankruptcy filings. Those who are considering filing bankruptcy and meet these requirements are often better off filing sooner rather than later, especially if they are looking at a potential raise at work. Other life changes such as marriage, having a child or preparing for retirement can have an impact on your desire to file bankruptcy.
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Putting off the inevitable is probably not a good idea as the longer you wait, the more difficult the process can be and the more debt you may incur. Keep in mind, credit card companies and other creditors are going to keep assessing interest payments and late fees which will only mean more debt. Even if you have not decided that bankruptcy is right for you, contacting a bankruptcy lawyer in Kennesaw and discussing your current financial situation and your options is typically a good idea. Do not put it off any longer than necessary, even if you are uncertain, you may want to discuss your current finances and learn what your options are for filing bankruptcy.
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