Getting Ahead Of Financial Problems

As we approach the fall of 2022, inflation is approaching double digits for the first time in decades. Large price increases, especially on necessary items like housing, food, and fuel, rapidly eat away at financial security. Families who were once able to put money away every month are suddenly barely able to make ends meet. As a result, they are vulnerable to the financial storms of life, such as serious injury or illness and divorce.

When these storms hit, or even when they loom on the horizon, people have basically two choices. They can watch things get worse and hope they get better, or they can reach out to a Chicago bankruptcy lawyer and take control of their own financial situations. Unfortunately, many people let bankruptcy-phobia, an unnatural fear of this proceeding, cloud their judgment in these situations. But the fact is that no other debt relief plan can match the benefits of bankruptcy, especially given the relatively small cost.

Chapter 7 Debt Discharge

When they have trouble paying bills, many families over-rely on credit cards. The average credit card interest rate is above 18 percent. So, the put-it-on-my-card approach isn’t much more than a Band-Aid.

Chapter 7, on the other hand, is a long-term solution. Chapter 7 quickly eliminates most unsecured debts, such as:

• Credit cards,
• Medical bills,
• Revolving debt accounts, and
• Payday loans.

Many families pay several hundred dollars a month on such bills. Imagine what it would mean if you could put that money somewhere else, like in a vacation account or a savings account.

As mentioned, the cost of Chapter 7 isn’t as high as many people think it is. Bankruptcy’s negative effect on credit scores isn’t as bad as many people think it is. Additionally, bankruptcy looks better than charge-offs, repeated late payments, and other entries which show the debtor quit. If you file bankruptcy, at least you did something.

Additionally, people who file Chapter 7 to obtain relief from harsh economic conditions get to keep most or all of their assets. Your most important assets, like your personal property, house, and retirement account, are exempt under Illinois law.

When you work with a Chicago bankruptcy lawyer, the cost is even lower. Only experienced attorneys can unlock advanced bankruptcy features which, in many cases, could save your family thousands of dollars a year.

Recovering from Bankruptcy

Officially, bankruptcy filings remain on credit reports for several years. Unofficially, many people are able to put bankruptcy behind them in much less time.

Simple steps, like paying bills on time, are an excellent way to raise a credit score. On-time bill payment, especially for housing and other obligations that banks report directly to credit bureaus, make up almost half of your credit score. Since they aren’t wasting money on credit card bills and other unsecured debts, it’s easiest to stay current on these bills and even pay them off early.

Responsible credit use is another great credit building tool. Find a card with a low limit, charge something every month, pay the bill early every month, and watch your credit score rise every month. 

Reach Out to Thorough Cook County Lawyers

No matter what kind of financial problem you are having, bankruptcy could be a way out. For a free consultation with an experienced bankruptcy attorney in Chicago, contact the Bentz Holguin Law Firm, LLC. Convenient payment plans are available.

Source:

cnbc.com/2022/07/08/another-hot-inflation-report-q2-earnings-make-for-difficult-week-ahead.html