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Filing for bankruptcy is not an easy decision to make but in some situations, it becomes the only thing that you can do. It is very daunting but it is more common than people think. The benefits for filing bankruptcy depend on the person. The most common conversation I have is that you can do this now, file for bankruptcy and take care of this problem, or you can keep living on beans and rice and turn the heat off every winter to pay Visa and come see me in six months because there’s just not enough income coming in to pay down these balances. If your balances are too high, your debt to income ratio is blowing up your credit score anyway. If you are in foreclosure, your credit score is shot anyway.

Unless you have a strategy, a real concrete strategy to fix this, in six to nine months the most efficient business-like, reasonable thing to do is file for bankruptcy, zero everything out, and start fresh. In six to nine months your credit will have recovered. If you have a foreclosure issue, you’ll have a plan to get your mortgage straightened out. If you have high credit card balance, those will be zeroed out. If you’re about to lose your car, you’ll have your car to go to work. You won’t have six to nine months from now the notion that you should have done this sooner.

Even though filing for bankruptcy ruins your credit score, there are ways to build it up again. As long as you can show that you are paying your bills every single month, you will be okay. After you file for bankruptcy, credit card companies will give you offers because they know that you are required to pay your bills because you cannot file for bankruptcy again for a certain period of time.

If you are in need of experienced legal counsel in New Jersey, please contact Tomes & Hanratty, P.C. and we will be happy to assist you.