Top 5 Reasons to Avoid Bankruptcy in Illinois and Opt for Debt Settlement Using Benveniste Law Offices
Many Americans believe that bankruptcy is their only hope when dealing with compiling debt, yet oftentimes we find that this is far from the truth. Bankruptcy comes with serious consequences and should not be considered without exhausting all other options. Unfortunately, consumers who consider bankruptcy do not realize that other, healthier options are available to overcome debt. They may also be tempted by bankruptcy ads offering to resolve bankruptcy for as little as $500. While these ads are tempting to those who are barely keeping afloat, it is not a risk-free process. Take a look at the top 5 reasons you should explore alternatives to bankruptcy, such as hiring an Illinois debt settlement attorney.
Bankruptcy Kills Credit
Chapter 7 bankruptcy is one of the more common forms of consumer bankruptcies because it does not include a plan for repayment. Yet as much as bankruptcy is promoted as a “fresh start,” it leaves its mark for a period of up to 10 years on your credit record, which does nothing positive for your financial future. Everyone you would want to hide your bankruptcy from would be able to find out with a simple credit check. You could be refused from future mortgages, loans, and you could even lose the opportunity to find housing, as landlords do check credit reports as part of the application for an apartment.
You Could Lose your Home
Chapter 7 bankruptcy is a liquidation bankruptcy, which means that your assets will be liquidated in order to pay off creditors. If you are not current on payments to your car or home, you run the risk of losing these assets.
To avoid a possible foreclosure, many people in debt may consider chapter 13 bankruptcy. This type of bankruptcy allows for a repayment plan, yet it will still ruin your credit score for years to come.
Automatically Lose All Credit Cards
When a person files for bankruptcy, almost all credit cards are automatically canceled. This can make it difficult for you to keep spending, even if you are spending on the necessities. In addition, all future lenders will see it on your credit report for up to 10 years meaning that, even if you work hard to repair your finances and your credit, you will continue to experience difficulty in obtaining credit cards, mortgages, loans and more.
Don’t settle for bankruptcy; with the help of an Illinois debt settlement and relief attorney, you could negotiate your debt and put an end to the harassment that comes with being in debt once and for all. Take a stand for your financial future, contact attorney Heather Benveniste at 1-800-497-5358 or contact Benveniste Law Offices.
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