When an individual finds that their backs are up against the wall because debt, then they have three options. The first option is to ignore their financial problems, and hope that it will eventually go away. The second option is to try to stick it out with bad credit for a while, until they can pay down their debts, or the debts ages off their credit reports. The third option is to file for bankruptcy, and to see if they can get their debts dismissed or at least, set up with a legal payment plan. Let's take a look at all the options.
The first option is to ignore the bad debt, and hope that it goes away. In short, it won't. This is for two reasons. Number one, the debt hangs around one's credit report for at least seven years, and sometimes longer. A person with bad credit won't be able get financing for cars, they won't be able to get financing for homes and in some cases, they won't even be able to get a decent job. They'll find that they're in a Catch-22 situation, because without a decent job, they won't earn the money to pay back their debt. So the cycle continues, and they find that although they're not having to file for bankruptcy with a Chino bankruptcy law firm, they are not living life the way they should either.
The second option is to ride out bad credit. Again, bad credit reports can stay on one's account for a period of seven years. Some people can't deal with the stigma that bankruptcy brings, so they won't consult with a Chino bankruptcy attorney to see if this is an option that they should pursue. A person is certainly free to ride out bad credit, but seven years is a long time to have to deal with the knowledge that they have bills that are outstanding. A bankrupt law firm Chino Hills could be their solution.
The third option is to pursue bankruptcy through the bankruptcy courts, and with the help of a Chino bankruptcy attorney. When a person decides to go see a bankrupt law firm Chino Hills attorney, they'll take a means test to see where they are at legally in their ability to pay back their debts. When it is determined that they can't pay back the debt, a person can possibly have their debts removed through Chapter 7 bankruptcy. This wipes the slate clean, so to speak in many cases. If a person doesn't qualify for Chapter 7, they could qualify possibly for Chapter 13, or Chapter 11.
Bankruptcies aren't the stigma that they used to be, particularly in times that so many people have lost work, and can't pay their bills. The issue isn't about fault, but it's about moving forward. Certainly, a Chino bankruptcy attorney works hard to make sure that their clients move forward with their finances.
