Credit Counseling vs. Bankruptcy

Is filing for bankruptcy really as damaging as you think it is? For a while,
people have been avoiding bankruptcy because of the supposed negativity
that happens afterwards. Things really have changed and as more consumers
get educated about bankruptcy and how it can help you, you may see this
option in a new light. It is true your credit score may be affected but
many who have filed say it has helped them get their finances back in order.

There are a few aspects to think about with bankruptcy. You can actually
take steps to plan what you want to do financially now prior to bankruptcy,
instead of waiting to plan after the case is closed. Planning ahead even
before your case is filed can give you the advantage you need to make
better choices after your case is completed. Your credit score may have
a better chance at rebounding upon filing. It has already taken a hit
from debt obligations you have been unable to pay (mortgage, vehicle,
medical bills, credit cards, personal loans, etc.)

Outstanding debt actually makes up a considerable portion of your credit
score. Many debtors quickly learn after filing how soon they become eligible
to get credit again. The plan you made before filing can be brought out
at this point. Since you have eliminated old debts, credit companies feel
you are a good risk since you have completed credit counseling, financial
management, and you have plenty of time before you become eligible to
file for protection again.

If you have a secured debt (vehicle or house for example) you can reaffirm
what is owed with the creditor (make an agreement). This can also help
your score rebound from bankruptcy sooner. Discuss your situation with a
Dallas bankruptcy attorney.