For some people, bankruptcy is not only a good idea to escape massive debt, but it is also something that can be financially dangerous to avoid. Many people are scared off by the word bankruptcy, because of the many myths associated with the word. However, for some people in need of debt relief, it may have some major benefits in the future, especially those wishing to rebuild credit.
Why Avoiding Bankruptcy Could Be a Mistake When Rebuilding Credit
The Federal Reserve Bank of New York notes that people who undergo bankruptcy will have more lines of credit open to them than those who refrain from bankruptcy. This could be because someone that undergoes bankruptcy is now in a better position to pay back creditors.
Additionally, lenders will know that someone that files for bankruptcy will not be able to do so again for several years. Meanwhile, someone that decides to avoid bankruptcy and stay in his or her current financial situation is unlikely to find lenders willing to take a risk on someone that does not have the cash flow that someone recently free of some debts might have.
As many people know, getting access to a line of credit is a quick way of rebuilding tarnished credit. A bankruptcy attorney is a great counselor to advise you how to open that gateway to financial freedom.
Where Can I Find a Bankruptcy Attorney in Washington DC?
If you are realizing the serious financial implications of avoiding bankruptcy, then you should seek an attorney right away. Depending on your situation, Chapter 7 or Chapter 13 bankruptcy may be the tool you need to find your path to debt relief. Many are afraid of credit hits, but a good bankruptcy attorney will tell you that you can always rebuild your credit by making wise decisions in the future. Check out this page to see some options on how to rebuild credit after bankruptcy.
[Did You Know? Washington DC had 697 nonbusiness bankruptcy filings in 2014.]
Law Firm of Kevin D. Judd – Maryland and Washington DC bankruptcy attorney