Whether you have lived in Tennessee all your life or are a recently arrived resident, you may find its economy much like that in other states: sometimes great, sometimes not. In fact, the ebb and flow of the global and national economies ultimately have impacts on your local and personal economic situation as well. In short, if you've been dealing with some financial problems lately, you're likely not alone in your struggle.
Bankruptcy is a potentially viable option for obtaining real debt relief, but it often gets a bad rap. The trouble is that most of the negative stigma regarding bankruptcy is associated with myths, not facts. Has someone told you that filing for bankruptcy would be a bad idea because it will ruin your credit score? If so, you'll want to keep reading this post because that statement is not necessarily true.
Things to know
We would never want to minimize the gravity of a serious financial crisis. Such situations are stressful and can be greatly problematic, both in the present time and, sometimes, far into the future. However, you can be hopeful because most financial crises are temporary, if you know where to seek options and how to develop a solid restoration plan. The following information will help you choose a best course of action:
- There are several types of bankruptcy. It is possible to qualify for one without qualifying for another.
- It is true that filing for bankruptcy shows up and stays on your credit report, anywhere from seven to 10 years, depending on the type of bankruptcy you file.
- It is not true, however, that having bankruptcy on your credit report automatically destroys your credit score. In fact, bankruptcy is often the first step toward raising a credit score.
- If you are able to discharge debt through bankruptcy, the elimination of that debt may cause your credit score to rise.
- Many people say that, after filing for Chapter 7 bankruptcy, their credit scores rose within six months.
Your credit report might not be the only thing you're worried about regarding your current financial problems and possible solutions. Perhaps collectors are harassing you with daily phone calls. Filing for bankruptcy places an automatic stay against collections. That equates to no more phone calls!
How to know bankruptcy is right for you
Whether your credit card balances got out of hand, you have unpaid medical bills or haven't been able to make your mortgage payments, it doesn't necessarily mean there is no way out. By exploring all the debt relief options available to you, you can devise a plan to eliminate debt and lay the groundwork for a stronger financial future.