Common Bankruptcy Questions Answered

Common Bankruptcy Questions Answered

What is bankruptcy?

Bankruptcy is a legal process where a debtor, which can be an individual or business, that is unable to pay their debts can have their debt wiped out by asset liquidation. In exchange for having their debt cleared, the debtor may agree to a repayment plan. Declaring bankruptcy has several steep consequences, such as damage to your credit score, inability to take out certain loans, and foreclosure. The debtor may be able to use their liquidated assets to pay off a portion of their remaining debt. 

How does bankruptcy affect your credit score? 

Declaring bankruptcy is a difficult and risky decision that can impact the health of your finances in the years to come. However, it may be the only sensible option to getting a fresh financial start. Following bankruptcy, your credit score may take a hit by as much as several hundred points. Building back up your credit can be hard and will not be done immediately, but it can be done gradually over time through things like making on-time payments and using a credit card responsibly. 

How can I improve my finances after bankruptcy is over? 

Bankruptcy is something that no one expects to have to go through in their life. However, it is more common than you think and it is possible to recover after filing for bankruptcy. In fact, many people have been able to get into a better financial position after they have finished the bankruptcy process. Talk to a bankruptcy attorney who can help you learn more about how to improve your financial health.

What are debt relief alternatives? 

There are many types of debt solutions out there that can be right for you. It can be hard to know which choice to make when you are trying to pay off your debt. Thankfully, there are several alternatives to bankruptcy that you can consider. Debt consolidation, debt settlement, and refinancing plans are just a few. The alternatives that are right for you depend on your situation and several factors, such as the type of debt you have and whether you are a homeowner.

Why should I hire a lawyer if I’m considering bankruptcy? 

Skilled New Haven, CT bankruptcy attorneys like one at the Law Offices of Ronald I. Chorches are there to help you make the best decision that can allow you to arrive at the solutions that you are looking for. If you are struggling with debt and are unsure if you should file for bankruptcy, you can get help from our team and we will assess your situation. We understand how hard it is to make the right choice, especially when it comes to something like finances. There is no time to waste if you have debt that needs to be resolved. Our firm has helped many people with debt find practical and permanent solutions to their financial issues. Filing for bankruptcy has a stigma attached to it, but you’re not alone in your struggle. Contact an experienced and qualified bankruptcy attorney near you if you want to know what your options are.