How easy and painless is filing for bankruptcy? I don’t have a high $ amount in debt, just a lot of negative marks on my credit.
I owe maybe $11,000 in student loans, med bills and little things here and there. I’m trying to repair my credit and only have one active credit card. Is bankruptcy worth it? If so how quickly can it all be fixed? I’m also a small business owner with a separate DUNS number for business credit.
It is easy for an experienced bankruptcy attorney to file a bankruptcy case for you; some individuals may also believe that it is easy to file for bankruptcy without an attorney. However, filing for bankruptcy is never painless. Filing for bankruptcy protection can grant you instant relief from most collection activity. However, filing for bankruptcy is not an instant fix. You should speak with an experienced bankruptcy attorney before deciding to file for bankruptcy. You will want to know which of your debts may not be discharged and whether your one active credit card will be part of your bankruptcy. An experienced bankruptcy attorney can make the process relatively painless for you, but that same attorney may be able to help you avoid bankruptcy, too! I hope this helps.
The foregoing discussion is general in nature and not meant to be legal advice for your specific issue(s). No attorney-client relationship is established by the foregoing discussion. For legal advice concerning your specific issue(s), you should directly consult with a licensed attorney.
All things are relative. Bankruptcy is not "easy" or "painless" but might be easier than most types of full-blown litigated cases, such as a divorce. It may not be the best response to the "little things" on your credit report that may be making it difficult to get credit. It only makes sense if a person has exhausted all other (less drastic) options.
You may want to try and use your most recent credit report to identify debts and pay them in full, or settle them for less than the full amount. If you don't know how to go about that you might try a nonprofit credit counseling service. If you are sued for the collection of a debt, contact a debt collection defense attorney in your area. If you defaulted on your student loan(s), you may want to contact an attorney that handles student loan issues, to see if you can get out of default.
This answer is for general information purposes only and is not legal advice. No attorney-client relationship is intended or formed by the posting of this answer. Law Office of Lisa J. Espada * San Francisco, CA *
A good local San Diego Bankruptcy attorney can make filing a bankruptcy for you extremely easy. Most local San Diego Bankruptcy attorneys make the payment of fees very affordable. Additionally, while choosing an attorney, look to see if they are well versed in student loans as well. Your credit should be better after you emerge from bankruptcy.