Many people use their retirement to pay off debt. If you are facing insurmountable debt, you have other options beside depleting your savings.
Attorney Jen Koss explains in this incredibly informative video. Take a couple of minutes to watch it.
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Many people wonder whether bankruptcy is a good option for them, and whether they’ll ever recover from it. It can be a very overwhelming experience to go through a bankruptcy. However, there is life afterwards.
Bankruptcy is a Legal Tool to Get You Back on Your Feet
It’s not intended to destroy your life, but rather is an opportunity to rebuild your financial future. It’s extremely important that you meet with a professional attorney to assess whether bankruptcy is the best option for you.
Learn How to Protect Savings Accounts
We often find that people deplete retirement accounts in efforts to pay back debts, only to find out that had they filed for bankruptcy, that those accounts would have been protected.
An attorney can also assess whether the particular debts that you have can be taken care of or relieved through a bankruptcy.
It’s also important to find out from an attorney whether you qualify for bankruptcy, and for what chapters of bankruptcy, if any. An attorney can also assess whether certain types of property that you own would impact a certain chapter of bankruptcy.
Additionally, those that have a pending foreclosure, or are facing a possible wage or bank account garnishment, will want to consult with an attorney right away to see what can be done to help their situation.
Rebuilding Your Credit
The first bit of advice that I give to my clients is to move past the simple fact that you’re filing a bankruptcy. While a bankruptcy filing is public information, it’s extremely rare that someone’s going to go digging through your credit history, unless you’re seeking out new credit, for example.
There are also some tips that we can provide to those who file for bankruptcy to help rebuild your credit score afterwards. For example, obtaining a credit card with a small limit, making monthly payments, and paying that balance off in full every month, can help rebuild your credit score.
While a bankruptcy filing can show up on your credit report for up to 10 years, it is not a 10-year financial death sentence on your score. Keeping a close eye on your credit score will also allow you to see how you’re doing and improving over time. There are free websites out there that will allow you to do this without penalty.
Bankruptcy is really a way to get back on the road to financial freedom. I hear time and time again from my clients how amazing it is to have that financial stress alleviated once their bankruptcy is filed.