Credit Ruined by Bankruptcy? Does Credit Consolidation Work?
The Bankruptcy Law Firm of Hitchcock & Associates, Chicago, Illinois
There are myths and misconceptions of bankruptcy that persist. One of the most prevalent misconceptions is that bankruptcy is a simple legal process that anyone can tackle alone by simply printing out some forms from the Internet. In reality, bankruptcy is a legal procedure that will affect all aspects of your finances in the present and future. An experienced bankruptcy lawyer really can help to help guide you through the process so you can make informed decisions every step of the way.
Call us now at (312) 445-9062 for a free bankruptcy consultation. You can also contact us online.
Misconceptions of Bankruptcy
Using a credit consolidation company is more effective than bankruptcy in getting rid of unmanageable debt
A very small percentage of people successfully reorganize their debts using credit consolidation companies. Too often, people cause much more damage to their credit rating than if they had not used these services at all.
These companies claim they'll get credit card companies to wipe out your bill by agreeing to a lump sum payment. The chances of getting all your credit card companies to agree to this is slim. Even worse, credit consolidation companies charge enormous fees for their services (generally much more than what it costs to hire an attorney and go through bankruptcy).
In the end, you owe more - not less - after hiring a credit consolidation company.
A mortgage loan modification will stop foreclosure on my house
The federal government has passed legislation helping bankers, but no definitive legislation for homeowners behind on mortgage payments. Note: The fact that you are negotiating with a lender will not prevent foreclosure.
Credit is ruined after bankruptcy
Wrong. Some people get credit card solicitations even as they are going through the bankruptcy process. Credit card companies want to make money. After filing bankruptcy and restarting your financial life, these companies know that you are currently debt-free and will not be able to file for bankruptcy again for a period of seven years.
To learn more about either Chapter 7 bankruptcy or Chapter 13 bankruptcy, call us at (312) 445-9062. A free consultation with Hitchcock & Associates is free. You can also contact us online.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
