People are very afraid to declare bankruptcy because it carries a certain stigma. However, in some cases, bankruptcy is the best option. Here are some ways that bankruptcy can help get you out of a financial jam.
Bankruptcy Can Raise Your Credit Score
You may think that bankruptcy will be a disaster for your credit score. It is true that if you contact a bankruptcy Maryland lawyer and file for bankruptcy, your score could decline in the short term. But since bankruptcy erases the debt that you were struggling with, within the first year of filing, your credit score will be better than it was before.
You Will Have More Access to Credit Afterward
If you have not been able to pay all your debts, your credit score has been suffering. If you apply for new credit, you will likely be denied because you can’t even pay the debts you already have. However, after bankruptcy, your old debts are gone. Creditors will be more willing to lend you money or open credit cards for you because you don’t have any other debts to pay. It is true that you might not be able to get a large line of credit right away, but you will certainly be able to borrow more than you could before bankruptcy.
You Will Be Free of Debt Collectors
If you have not filed for bankruptcy yet, you are probably being hounded by debt collectors who want you to pay up on your debts. They could be calling you constantly, filing judgments against you or trying to garnish your wages. All of these unpleasant actions will stop after you declare bankruptcy.
If you are suffering from overwhelming debt, filing for bankruptcy could be the best solution for you. It will give you a clean slate and allow you to restart your life without debt hanging over your head.