My wife and I made the decision to open a residential cleaning business. We needed enough money to get the equipment, do a bit of advertising and get the licensing and insurance to protect ourselves and our customers. For about two years, things went very well, but then, things took a terrible spin for the worst after we hired a few employees to help us with the workload. Since then, we have gone bankrupt and have gone back to working full time jobs. If you are struggling with your business and considering bankruptcy, this blog can give you some answers to the many questions that you have.
Before you make a snap decision, you may want to consider some of the reasons why filing bankruptcy might be the best possible option for you at this time. This way you will have a much easier time making the decision that is best for your personal financial situation.
You No Longer Have Debt Collectors Hounding You
Dealing with all of the late statements, collection calls, and the fear of wage garnishments can be time consuming and be the cause of a lot of anxiety. In some cases, people have found that they ended up suffering from some depression because of how deep in debt they found themselves.
Once you retain an attorney and have received a file number for your case, your creditors will no longer be able to call you. They are also no longer allowed to file for any wage garnishments. All they can do is to continue to send statements regarding your debts, which can come in handy so you can make sure that you are including the right dollar amount that is owed to each creditor within your bankruptcy filing.
You Can Begin To Improve Your Credit
While it is true that there will be a hit to your credit score once you have filed for bankruptcy, you should have no trouble beginning to work on improving it once again. After the dust has settled from the bankruptcy, you will find that you no longer have any delinquent debts that are being reported to your credit reports anymore. Just having those taken out of the equation can help improve your credit score, even if it is just a little bit at a time.
After some time has passed, you could look into obtaining one secured credit card with a low available credit. Make use of that and make timely payments and you will find that your credit score will begin to go up. Just make sure that you are not going hog wild with the credit cards because you do not want to find yourself back in the same situation again, especially since you will be ineligible to file for the same chapter of bankruptcy for many years.
If you find that you are indeed interested in filing for bankruptcy, you will need to find a quality attorney in your town or surrounding area that can help you. The sooner you get the process started, the sooner you will no longer have to worry about the debt that you have begun to have trouble paying.
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