You already have a lot of debt, how will you be able to afford a bankruptcy attorney?
The truth is that anyone who has a damaged credit rating has usually had some financial trouble at some point in their life. But this does not mean that they need to live out the rest of their life with such unfortunate event because most damaged credit can be fixed over time.
In some cases, your best option is to find the most trusted law firm and hire an attorney that specializes in credit repair. But before you start searching for one, here are the things you should do:
Negotiate with your creditors
Life is full of unforeseen obstacles; even creditors know that. So try to negotiate with your creditors to remove defaulted debts or mark them “paid as agreed” in exchange for paying down part of the total amount of what you owe. You may even be granted if you ask for a “goodwill adjustment” on your credit history if you had a long-standing good record of payments before the event that caused you to make some late payments.
Learn to take notes! Be always prepared with a pen and paper so you can write down important details whenever you talk with a collector. Write down the name of the person you talked to, when it took place, and what was discussed. Not only can this help you take the emotion out of the situation, but you’ll also have a record if
Refrain from using your cards -- too much
Know that many types of damaged credit issues can be fixed. You can submit reports to all three bureaus (Equifax, Experian, and TransUnion), and over time you can get them to remove errors and sometimes even negative records. This will take some time and prowess on your part, though. Even if you pay off the balance of your credit card every month, maxing out your cards regularly still hurts your credit.
To ensure a better credit score, you should never spend more than 30 percent of the maximum allowed. In fact, this so-called “credit utilization ratio” is actually a part of the formula that determines your score and to get the best possible score, you should never use more than 10 percent of the credit available to you.
Pay your bills twice a month
It may seem like a small action, but paying down your credit cards twice a month can actually have a significant impact on your credit score. Because you’ll be paying off some of the debts accumulated that month before your credit card balance is officially reported to the credit bureaus. Your credit utilization ratio will look healthier—no matter how much you may have needed to use the card throughout the month.
Allowing a debt to go unpaid can lead to further adverse action from your creditor or collector, like a charge off or judgment. And judgments can lead to deduction of your wages or assets. Plus, paid collection accounts generally weigh less heavily on your credit scores than unpaid account, especially in the long term. In fact, some new credit scoring models ignore paid collections entirely. So, depending on what you owe and what settlement a creditor or collector proposes, the ends may justify the means.
If you have a debt and are facing any financial difficulties, it may be a good idea to consult with a law firm with a qualified bankruptcy attorney as soon as possible.
A debt management specialist and experienced bankruptcy attorney is the best choice. These professionals will provide all of the available debt relief options. A law firm that only offers bankruptcy representation may recommend this step even if another option may be a better choice in some cases.
Conway Law Group - Richmond, VA
6802 Paragon Pl, #410 Richmond, VA 23230
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