When you’re in the middle of financial hardship, bankruptcy may be an inevitable step that you’ve been avoiding. Though it can be a stressful process, you have the potential to come out the other side in a much better position than you were to start with. You might be surprised to learn that you don’t have to lose everything the moment you file for bankruptcy.
You May Be Able To Save Your Assets
Once you’ve started the bankruptcy process, any foreclosure or repossession proceedings must stop, at least on a temporary basis. Depending on the type of bankruptcy you file, you may be able to negotiate a more manageable payment schedule, so that you can keep your home or your vehicle. A bankruptcy lawyer Rockville MD can help you determine if this option is possible for you.
A delay in collections can also give you the time you need to catch up on payments and perhaps look for more stable income. You can also take this opportunity to find more affordable housing in lieu of your expensive mortgage.
Your Good Credit Is Not Unrecoverable
It’s normal to fear the hit your credit score can take once you file for bankruptcy. Unfortunately, the better your credit, the more impact this step can have. Despite long-term notations in your report, it is possible to rebuild your standing within a few short years.
Nearly half of those who file bankruptcy can get their scores back within a fair range within one year, and even more accomplish it after two years. A major reason to file is so that you can get your finances in order. Prompt payments with little outstanding debt can help you bring your score back up to where it used to be.
If bankruptcy has become your only option to get your head above water, don’t be afraid to take this step. It is possible to recover, and you don’t have to lose everything to do so.