Why Bankruptcy Works

For most of us building a high credit score is like having the golden ticket to being able to fund purchases that just aren’t accessible through regular monthly cash flow. Mortgage companies welcome us with open arms, credit and store card providers tempt us with ever increasing limits at what appear to be ever so affordable rates…and want to upgrade your car? No problem – lease or loan, your choice.

And why not?

If you can maintain your income and your outgoings are manageable there is no reason why you shouldn’t enjoy all the goodies. However, life can take unforeseen twists and turns which can quickly bring down the proverbial “house of cards”.

Being laid off, sickness, cancelled contracts and even divorce can very quickly make what was an almost idyllic existence into a living nightmare.

Debt is one of the leading causes of depression, as so often, people cannot see past the mountains of unopened mail, the barrage of phone calls and the inability to live a “normal” life, especially if they have a family to support.

There really is no need for your debts to overwhelm your life.

Your first point of call could be a credit counselling service. They will be able to advise you for the best route to take control of the situation and in some cases, especially for those with low level of debt (say, below $5000) actually help in drawing up a payment plan and seeing it through to acceptance by the creditors, but they do not have the same levels of expertise or gravitas as a qualified lawyer who specialises in personal bankruptcy.

Bankruptcy no longer has any stigma attached to it. In fact, nobody apart from you need ever know you are bankrupt unless you tell them.

There are many benefits in applying for either Chapter 7 or 13 bankruptcy in Minnesota. Apart from the peace of mind of no longer being harassed by your creditors, they do not decide whether the application is successful, they can only get access to assets that aren’t protected. The process is quick has many benefits not least of all being that after being discharged from bankruptcy, which can sometimes be just a matter of months, you will be able to rebuild that precious credit rating. Which second time round you will be unlikely to take advantage of.

At Barbara J May we have a team of experts in personal financial affairs so why not call us for a free, friendly consultation and take the first step to being totally debt free?