If you are struggling to pay your bills each month you will need to seek out a debt relief option to help you. With the high living costs in both New York and New Jersey you are not alone. There are millions of people in and aroundStaten Island New York and Union City New Jersey that explore debt relief options every day. Many people wonder how these debt relief options affect credit scores. The first question we are always asked is will I ever be able to rebuild my credit if I file bankruptcy?
At Karra L. Kingston Esq., our bankruptcy lawyers in New York and New Jersey can help you learn your legal options and how each will impact your credit score.
Call today at (973) 979-9078 to speak with a lawyer directly.
Debt Relief & Credit Score
Debt Settlement
If you have money left over after your living expenses each month and you are not living paycheck to paycheck, you may be able to use a debt repayment plan to settle your debt.
To ensure a debt settlement will work for you, you must:
- Have the money to offer lump sum settlements to your creditors.
- Make all payments and never fall behind.
- Put Money away for any emergencies that may arise
- Set money aside for tax liability
When you do a debt settlement depending on how quickly you settle your debt, it may not have much of an impact on your credit score. Keep in mind this is only if you have the funds somewhat immediately to settle your debt. If you are like most, who dont have funds set aside to offer 60% to their creditors then as your credit score continues to go into default you will more than likely see negative impacts to your credit score. Further, if you end up falling behind on your payment plan you will end up in a worse situation.
Filing Bankruptcy to Eliminate Debt
Bankruptcy is a quick, easy way to get out of debt. Many people are under a misconception that bankruptcy will ruin their credit forever. This is not true at all. Sometimes people who file bankruptcy have their credit scores go up. You can start saving and putting money away immediately after filing bankruptcy.
Speaking with a Bankruptcy Lawyer Should be a Priority
While you may be upset about being in debt, you should contact a bankruptcy lawyer that can help you determine which steps you should take to help you improve your credit score.
By contacting our Staten Island Bankruptcy Lawyers and New Jersey bankruptcy lawyers we can give you a free case evaluation today and give you ways to improve your credit score.