Your debt load has spiraled out of control and your ability to keep up with it has decreased greatly. The situation is now one of managing it or getting rid of it entirely, but you’re not quite sure how to do it. There are options such as debt counseling, consolidating everything into one payment, or simply eliminating it at one go with bankruptcy. Before you move forward, however, talk to a Knoxville credit and debt lawyer first to discuss your options.
A Knoxville credit and debt lawyer is capable of looking at your personal situation and helping you determine what move is the best one to make. It may be that you can get rid of some of your debts by negotiating a settlement for less than what you owe, provided you have a lump sum available to pay it off. But when you don’t have a lot of money to pay anything off, there are few options available to you. The best option of all that is available is to file for bankruptcy and get rid of all of the debt at once.
If your first reaction to the idea of filing for bankruptcy is one of “it ruins credit,” you need to reevaluate your position. Chances are very good that your credit rating is completely destroyed due to not paying your bills to begin with. Going the route of eliminating debt through bankruptcy has the effect of stopping the bleeding in one move. Instead of dragging out your inability to pay for years, the debt is gone in a matter of months or a handful of years, depending on which chapter you are eligible for.
Yes, it is true that bankruptcy does hurt your credit rating, but once it is over with, you start rebuilding almost immediately. Delinquent accounts are no longer reporting to the credit agencies, along with all of the negative connotations that comes with. Instead, as time passes, your credit starts recovering because you don’t have anything reporting as unpaid anymore. In fact, you will find that there are opportunities offered to you that help you rebuild your credit rating, and within a shorter time span than you think. You have everything to gain and nothing to lose by filing for bankruptcy.
