Bankruptcy Attorney in Itasca
It isn’t always easy for debtors to make the decision to file for bankruptcy. That’s one reason why, at Cutler & Associates, Ltd, our bankruptcy attorneys serving Itasca offer free consults. We’ll explain what filing for bankruptcy can do for you, and help you understand what life after bankruptcy can look like. Once you’ve obtained a bankruptcy discharge, you’ll probably wonder why you didn’t file sooner.
Your credit reports are dynamic documents. They continually change over time, which means the record of your bankruptcy won’t stay on them forever. If you filed for Chapter 13, it will stay on your credit history for seven years. The time period is 10 years for Chapter 7. This sounds like a long time, but bear in mind that if you don’t deal with your debts, they will also negatively affect your credit history. Judgments can stay on there for as long as Chapter 13 bankruptcies. The same applies to collections, late payments, and foreclosures. Here at Cutler & Associates, Ltd, many of our clients are surprised to learn that filing for bankruptcy can be better for one’s credit history in the long run than trying to pay down debt a little at a time.
You don’t have to wait until seven or 10 years have passed before you can begin restoring your credit trustworthiness. The sooner you start working on it, the better. Your first step is to make sure you pay all of your bills on time. Set up automatic payments for all of your bills to avoid any slip-ups. Next, apply for a secured credit card, which is similar to a debit card in that you have to add funds to the account before you can use it.
Bankruptcy is highly beneficial for many debtors, but chances are, you’d rather not go through it again if possible. Establish a rainy day savings account and build up the balance as quickly as you can. This allows you to take care of unexpected emergencies, like car repairs or urgent care visits, without having to resort to credit cards or payday loans.
Every household needs a reasonable budget, not just bankruptcy filers. Smart budgeting allows you to take care of your current expenses and save for your future needs. One common mistake people make when budgeting is to forget to include a specific dollar amount for savings. Once you determine the maximum you can save each payday, you can adjust your direct deposit preferences so that this amount is automatically deposited into your savings account. The sooner you contact Cutler & Associates, Ltd., the sooner you can achieve your vision of life after bankruptcy.