One of the issues you will have to face when you are in debt is how to protect your credit score. It is a barrier of most individuals who wish to file for bankruptcy. But when you talk to our bankruptcy law attorney in Van Nuys, you will be surprised that it might not be as bad as you thought it would be.
Bankruptcy Law Attorney in Van Nuys – To file or not to file
Chapter 7 and 13 are types of bankruptcy that can help you face your financial dilemma. Both can affect your credit score.
Once the bankruptcy is over, you can start to rebuild your credit. When you file, your score will be in the middle 500s. If you have a higher score, you will surely get a bigger hit.
Each time you miss a payment, your score will take a hit. Thus, if you are considering bankruptcy, your credit score might already be lower. In that case, even if you do not file for bankruptcy, your credit score will still suffer.
What you will have to worry about is the credit report. Bankruptcy will remain on your report for up to 10 years. In that case, if you need to borrow money, your lender might not extend your credit or give your loan.
Should You Go for Debt Consolidation
Compared to bankruptcy, debt consolidation will have a more severe effect on your credit. When you file for bankruptcy, you can be rebuilding your credit score immediately. But with debt consolidation, your score will remain low for a very long time.
Debt settlement is another option. This option will not give you enough legal protection and bankruptcy rights. However, you are not required to pay off all your debt. But it will affect your credit score severely.
As you pay your debt, your credit score will continue to dive because your file will show missed payments each month. If the solution failed, you are stuck with a low credit score.
In that case, you must not be afraid of filing for bankruptcy because you are worried about your credit score. As mentioned earlier, when you miss a payment, your credit score will immediately suffer.
But if you get help soon, you can rebuild your score sooner. In many cases, bankruptcy is easier on your score compared to debt consolidation. The latter will take years to complete but your credit will continue to dive.
Debt settlement, on the other hand, will continue to hit your credit without a guarantee that you can settle your debt.
If you are not sure what to take, you should consider talking to an experienced bankruptcy lawyer. Bankruptcy is designed to help individuals in getting their lives back on track.
You should talk to an experienced bankruptcy law attorney in Van Nuys about your financial situation. At Karine Karadjian law office, our attorney will help you get a better understanding of how to handle your debt. Speak to our experienced counselor today to know the best option you can have: (818) 918-9660