Behm Law Group, Bankruptcy Attorneys

Every day, American adults are faced with the cost of living no matter where they’re located or what job they have. A large portion of the cost of living we all face is the existence of debts as a regular factor in many parts of our lives. From mortgages to cars, we all hold some debt that requires monthly payments. Without a structured budget and plan for repaying the debt in accordance with other monthly expenses, it’s easy to accumulate more and more financial pressure. If you find yourself facing unmanageable debt and don’t know what path to take to recover, Behm Law Group, Ltd. can give you the help you need to file for bankruptcy and start the process of long-term credit repair in Marshall, MN.

 The Truth About Bankruptcy & Credit Repair

Filing for bankruptcy has a poor public image when it comes to credit repair. While this is in part a realistic concern for those considering filing, it has often been overshadowed by the long-term benefits it provides. Bankruptcy is a highly effective, government-sanctioned remedy for resolving and recovering from a wide variety of debts.

Whether you choose to file for debt reorganization or liquidation bankruptcy as an individual consumer or a business, you can start down the path to stabilizing your finances while learning about how debts and incomes function in your life.

Consider the following facts that occur when you file for bankruptcy:

The Bad:

1. Bankruptcy will damage your credit score. Based on the FICO credit score calculation model, filing may lower your score from 100 to 200 points.
2. Records of a bankruptcy filing will stay on public record for up to ten years, depending on which chapter you file for.

The Good:

1. Despite affecting your credit negatively at first and being on your public record for years, the damaging effect that filing for bankruptcy has on your credit will start to diminish immediately after filing.
2. Your credit score may be improved to its original standing or recover to an even better score within a few years of filing. Some filers even report a restored credit score five years after filing.
3. Whether you file for Chapter 7 bankruptcy and have debts discharged in exchange for asset liquidation or choose Chapter 13 debt reorganization and a three to five-year repayment plan, you can start rebuilding your credit right away.
4. Rebuilding your credit during and after bankruptcy takes as little effort as budgeting, making debt payments on time, taking note of what you learn in pre-bankruptcy credit counseling, and making cautious spending choices.
5. When bankruptcy is removed from public record, it can never affect your credit or financial standing again.

Bankruptcy is designed to help the individual consumer or business recover from debts and re-enter the economic system as a valuable participant. It is not designed to trap debtors or leave Americans destitute, despite popular belief.

If you’re ready to resolve your debts for long-term credit repair in Marshall, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.