Lawyers are not always a Solution for Credit Repair and Credit
Building
Lawyers often charge high fees to help individuals get out of
debt. Credit repair clinics are available to assist individuals
with debt relief, but only the absolute desperate would even
consider these types of solutions.
So, if this is not the solution for repairing credit, then what
is? Many people that suffer from bad credit often wallow in a
pond of self-pity believing there is no escape. Most people sit
around waiting for the miracle that came to their neighbor's
door to hit their door.
The fact is there are no miracles that happen unless someone
takes the first step to eliminate the problem. We all suffer at
times, and some of us more than others. It depends on the amount
you owe, but for most of us getting out of debt is possible.
Let's consider Bankruptcy Chapter 7. Chapter 7 Bankruptcy allows
families and individuals to erase many of the debts owed to
consumers. Chapter 7 Bankruptcy will often erase medical bills,
home mortgage, car payments, and credit card bills. The
disadvantage with Chapter 7 Bankruptcy is that you will have to
give up some of your assets in most instances.
Once you fill out the appropriate papers you will then go into
an 'automatic stay' which stops all your creditors from
contacting you. This means that the creditors cannot garnish
money from your checks each month to apply toward the bills you
owe. It also means that the creditors can not deduct money from
your checking, savings, money market accounts and so on.
You are also protected temporarily since the consumers are not
allowed to discontinue your electric or gas. The advantage of
Chapter 7 Bankruptcy is that you have a degree of control over
all assets and income that are available once the bankruptcy is
in motion. There are debts that cannot be wiped out by filing
Chapter 7 Bankruptcy.
Those debts include child support payments, college tuition
loans, criminal fines and costs, or other similar bills. The
problem with filing bankruptcy is that new laws are coming that
will make it more difficult for debtors to file. The new laws in
motion are nearly prohibiting debtors from finding a solution.
Another form of bankruptcy that is available is the Chapter 13
Bankruptcy. Chapter 13 Bankruptcy means that the debtor keeps
their assets while making lower monthly installments on their
belongings. This is a good solution for building credit. If you
missed car or home payments it is a solution to help you repair
your credit.
The downside with Chapter 13 is that if you miss payments the
courts has the right to change your plans. If the courts see
that the delay is only temporarily they may issue you a 'grace
period' until you get back on track, otherwise you might get a
'hardship discharge,' which means that your debts are dismissed.
The best solution then is finding a solution for the problem
that won't lead you into the courtrooms.
This is only a headache since you will have to make court
meetings, be in someone else's control, and so on. The first
step to repairing your credit and building to a better future is
put some taps on your spending habits.
Setting up a budget plan is a great start to credit repair
without hitting the courts. Before long the law is going to make
it virtually impossible for anyone to go to bankruptcy court, so
it is time to get started now.
If you are not good at budgeting, there are Nonprofit
Organizations that will help you set up a budget plan for little
or no cost. Remember you are not alone, and there are people out
there willing to help you get back on your feet.
If you don't want to bother someone else with a budget plan you
could also purchase software programs that offer the tools for
budgeting. Quicken and many other software programs have
excellent spreadsheet programs, analyzing tools, and so on to
get you on the road to budgeting your money in order to repair
your credit.