Chapter 7 Bankruptcy in NYC
Getting into debt and other financial trouble is far too easy to do. Whether it happened because of a divorce, job loss, unexpected medical expenses, credit cards, or anything else, it can feel like a trap from which there is no escape. The sad reality is that if you only make the minimum payments on your debt (if you can even afford that) it will take you years, if not decades, to finally get everything paid off, and that is assuming there are no more unexpected issues. For many people in NYC, a Chapter 7 bankruptcy is a much more realistic and reasonable solution to debt problems.
Knowing Your Options
When people hear about bankruptcy, they often assume it is a bad idea, or something that should only be considered as an absolute last resort. The fact is, other options are often either unreasonable, or don’t actually work. For example, debt forgiveness plans and debt consolidation options sound great on the surface, but almost never work for real people. Just working hard and paying down your debt may be an option if you can significantly increase your earnings and avoid unexpected expenses, but since this isn’t a perfect world, it is unreasonable to think that is going to happen in many cases. Chapter 7 bankruptcy, however, is available to most people with financial troubles, and is a proven legal option that can wipe your slate clean so you can start over.
What About Your Credit
You may be thinking that while Chapter 7 bankruptcy in Brooklyn, NY may effectively wipe out debts, but it will also destroy your credit. The reality is, most people who are having serious financial issues already have a lower credit score. Trying to keep up with payments for years on end will only help to keep that score low over a longer period of time.
Many people are surprised to learn that while their credit score may take an initial hit (and even that doesn’t always happen) it will recover much more quickly. Once you have gone through the bankruptcy, you’ll be in the financial position to make your payments on time, and even build up some savings. All of this will help you to increase your credit score to a respectable level quite quickly. In a lot of cases, people begin getting credit card offers just months after emerging from a bankruptcy (just be careful not to get into troublesome debt again!).