People who are going through bankruptcy can be intimidated or overwhelmed with the thought of how to get their credit score low again. Contrary to what the general public believe, bankruptcy does not necessarily mean you will have a bad credit score, it only means you will have the bankruptcy record with you for at least 5 years before it will be cleared out and you can start over again. The bankruptcy record will also be something that the financial companies will consider when negotiating or doing business with you.
If you consider a debt relief agency rather that filing for bankruptcy, there are some important factors that you should look into. The most important thing is to check whether the company you are getting is a legally registered company. Trust is a very important matter when it comes to financial troubles, and aside from getting a trusted bankruptcy attorney to help guide you through your financial turmoil, it is vital that the debt relief agency that you are giving your money to will pay back the creditors. There have scammers who swindle their clients’ money, leaving them in deeper financial troubles than before. In order to guarantee that the debt relief agency that you will choose is legit, talk with your bankruptcy lawyer and consider having meetings with them together with your lawyer.
There are other options that can help you get through your financial burden aside from filing for bankruptcy. One option is to have your debt consolidated; allowing you to sum up all of your debts and make a fair monthly payment given to your debt consolidation company. It is a good option if your debts are due to unforeseen circumstances such as life crisis which stopped you from paying your dues on time. Another option is through debt settlement, where you will have a third party collect a certain amount of money that will then be offered to your creditors. The third party will inform your creditors of they are handling your debts and you’re willing to repay your creditors only through a discounted amount. This may seem like a difficult offer, but often creditors agree to the settlement rather than ask for all the amount.