What Is Bankruptcy?
If you’re struggling financially, bankruptcy may seem like an opportunity to pay down a portion of your debts over time or have some of them eliminated entirely. Declaring bankruptcy grants what’s called an automatic stay, which is essentially a block on your debt to keep creditors from trying to collect. They can’t deduct money from your bank account, garnish your wages or go after any of your other assets. You’ll then work with the court and your creditors to determine the next steps. There are 2 types of bankruptcy,
Chapter 7
Chapter 7 bankruptcy is often called liquidation bankruptcy because you will likely need to sell off some of your assets to satisfy at least a portion of what you owe.
Chapter 13
With a chapter 13 bankruptcy, your debts will be reorganized so that you can pay them off partially or in full over the next three to five years.
What Happens to My Credit if I Declare Bankruptcy?
When you declare bankruptcy, it’s a sign that you are no longer paying your debts as originally agreed, and it can seriously damage your credit history. Shortly after your bankruptcy is discharged by the court, it may be difficult to get approved for credit. Declaring bankruptcy could also affect your ability to get a new job, especially if that job is in the financial services industry or with a government entity. They do this primarily to make sure you’re a good fit for the job and that you’re not financially stressed, which could increase the likelihood of theft or fraud.
What should I do before considering bankruptcy?
Credit Services of America offers Credit Repair, Student Loan Consolidation, Debt Settlement, and Tradelines, to help boost your score. We can help you dispute any inaccurate information on your credit report, and offer solutions to alleviate your situation. Before you take the decision to file for bankruptcy and affect your chances of getting approved for credit, visit our office or give us a call! We can look at your specific situation and determine the best coarse of action! Also, as part of our debt settlement service, We can negotiate any account on your credit report between 30%-70% savings, and most importantly negotiate for DELETION! Credit Services of America can help you settle your debts and teach you how to manage your credit correctly along the way!
A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link creditservicesofamerica.com to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!
*Individual results may vary. Please call for details and to discuss your own individual situation.