Consult whether bankruptcy is the right solution

People might fall into debt for a number of reasons including illness, divorce or job loss. Filing for bankruptcy can stop creditor action, including lawsuits and foreclosure on a home, and may allow a person to keep some assets. People who are struggling with debt might want to consult a Chapter 13 lawyer Orlando Fl to discuss whether bankruptcy might be the right solution.

Chapter 13 Eligibility

Your income needs to be at a certain level to file for Chapter 13 bankruptcy because one element of Chapter 13 is working out a plan to pay creditors over three to five years. This may allow you to keep an asset such as a home. An attorney may be able to explain whether you are eligible to file for Chapter 13 bankruptcy.

 

Rebuilding Credit

You might be worried about filing for bankruptcy because of what it may do to your credit score. However, falling behind on debt is also bad for your credit score. A Chapter 13 bankruptcy generally only remains on your credit report for seven years, but you can start rebuilding your credit long before then.

One way you can start rebuilding your credit is by applying for a secured credit card. This involves putting down a deposit, usually just a few hundred dollars, for the amount of credit. You should use this regularly and pay it off each month to show you can be responsible with credit. Your credit limit might then increase. After a few months, you might try applying for a small loan that you also pay off quickly.

Some people might worry that filing for bankruptcy is an irresponsible thing to do, but it can actually be a responsible financial decision that puts you back in control. Filing for bankruptcy can free you from worries about creditor harassment and the consequences of debt and help you start a new financial life.