Frequenty Asked Questions About Bankruptcy
Filing for bankruptcy is an important and serious decision to make. Here are a few frequently asked questions when it comes to filing bankruptcy.
Will I stop getting harassed by creditors after I decide to file?
Handling the continuous onslaught of phone calls and voicemails from creditors can be stressful. Fortunately, bankruptcy gives you the ability to stop the creditor harassment. If you decide to move forward and file for bankruptcy, your filing will result in an automatic stay order. This order will make it illegal for creditors to call you anymore. They will no longer be allowed to collect on your debt. This is one of the benefits of filing.
What is a debt discharge in bankruptcy?
A debt discharge wipes out all your previous debts owed. When you file for Chapter 7 bankruptcy, assuming you are eligible to do so, you will get a debt discharge. This means that you will not have to pay off your previously owed debts. It is important to know that not everyone qualifies for Chapter 7 bankruptcy. The best way to understand if you qualify and to investigate your other options is to speak with a bankruptcy lawyer.
Does filing for bankruptcy ruin my credit?
Often times people that decide to file for bankruptcy have problems with their credit before filing. Bankruptcy can offer a great way to take back control over their personal finances. In fact, many times credit scores will improve over time once bankruptcy is declared.
Filing for bankruptcy will impact your credit report. The bankruptcy filing can stay on your credit report for up to 10 years, although sometimes less than this. While it\’s listed on your report, it can have a negative impact. Your situation will be unique though. Things such as your credit history, the type of bankruptcy you file for, your overall financial situation, and debts will play a role.
You may be considering bankruptcy to resolve a hopeless financial situation, or to delay debt-collection for a period of time to allow for financial reorganization. Speaking with a bankruptcy lawyer MA can help you resolve your financial issues. If you are considering bankruptcy in Massachusetts we can help.
How to Avoid Credit Attorney Scams
Credit Repair Attorney: How to Decide if You Need One to Clean up Negative Items
Fixing a bad credit report is not a pleasant experience. There are basically two ways of going about the credit repair process.
Many people decide first to fix their own credit only to discover the process is much more involved than they expected. This is because they are trying to save a few dollars by going the inexpensive route.
Unfortunately you may discover that repairing bad credit is one of those projects that only appears easy. There is so much to the process including legal research and writing, which is challenging even for credit lawyers at times.
If you are not the type of person who enjoys legal research in your free time, or don’t have patience for translating wordy statutes and confusing case laws from around the country, then this might not be for you. But if you are determined enough to plow through the stacks of law books, then you should expect to spend at least a a few Sunday afternoons researching applicable credit laws at your local library.
Assuming you are able to understand the case law and statutes, then you have to move onto the more important part of credit repair. The next step is to write a coherent and compelling dispute letter. You will need to cite the applicable case law and disputed items.
For example, the credit bureaus are trained to be on the lookout for those people trying do it yourself credit repair. They can easily spot the dispute letters written by amateurs. This can be a problem since credit bureaus are infamous for ignoring badly written dispute letters.
Even if you are a good writer, you probably are not going to enjoy standing in line at the post office. To ensure your dispute receives a proper investigation, you will need to mail the letter via United States Certified Mail.
By now you are probably wishing you had more free time. Mailing dispute letters via certified mail takes a lot of time. Unless you are extremely casual about how you spend your free time, this is probably not worth your time.
Disputing bad credit errors on your own also takes an organized office space and a strategic plan. For example, you will need a spreadsheet to track the progress of each disputed item. Plus, you will need to give yourself reminders or some type of alert in the event the bureaus or creditors have allowed the proper investigation period to expire.
As you can see credit repair is not a fun experience. There are so many better and more efficient uses of your time. Plus, it is difficult to learn and apply complex legal statutes and case law to your unique credit experience.
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