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Getting a Fresh Start This New Year by Filing Bankruptcy

                One of the things that people find out when they come to meet with an experienced Maryland bankruptcy attorney is that in most cases filing a bankruptcy actually has a positive effect on their credit. This comes most often as a surprise. The word on the street is often conflicting on this subject. Much of the faulty information comes from debt consolidation companies who see bankruptcy lawyers as competitors. It is true that a bankruptcy will appear on your credit report for 10 years. The importance of that is dwarfed by the reality that paying back tens of thousands of dollars with interest at 21% plus for people with normal income will take a lifetime.  All the while the delinquent accounts will continue to report and your credit score will suffer. This just makes no practical sense.

            One nice benefit we can offer a client is a special credit report created specially for people contemplating bankruptcy. This report will give our clients a prediction for what their credit score will look at in a year after filing a bankruptcy. Most clients are pleasantly surprised that their credit score will improve between 30 and 130 point within a year of filing bankruptcy.  It is sad to see so many living a terrible life under the yolk of debt that can be lifted in a few minutes mostly because of pride or false information provided to support the debt consolidation industry. You might be surprised to find out that the debt consolidation industry is actually promoted by the credit card companies. They are definitely not looking out for you.

            The exception to the rule that credit will improve is the poor soul who is in denial. This client comes to see me and has been “Robbing Peter to pay Paul.”  When they tell me this I have come to understand what it usually means: the client has finally exhausted all possible lines of credit, borrowing more and more money to pay living expenses so they can manage the minimum payments on the cards and loans. Sadly all good things must come to an end including the artificial 700 credit score when the credit limits are no longer available and sadly when the debt has grown exponentially each month to cover interest on the old debt. Don’t do this to yourself. Call us now for a free consultation with affordable bankruptcy lawyer. Start the New Year with hope and a fresh start for the future.

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