Bankruptcy is what you need, but will credit repair help you avoid it?
You have been conditioned to take responsibility for what we have done. Have you ever heard the old adage, “You made your bed now sleep in it?” How about the Puritan work ethic of hard work and thrift being the path to success? Or lessons from your childhood like save for a rainy day? It should be no surprise to you, but the rules are different. The Puritans did not have credit cards. They never heard: “don’t leave home without it,” or “what’s in your wallet?”
What does all this add up to? Parents, churches, even the credit card industry teach that bankruptcy is bad. It is scary to even mention the word. Many clients sob at the mention of the word. The easy way out is always bad. Hard work is the answer. So you will do anything to keep everyone happy and not file for bankruptcy. Given the choice between credit repair and bankruptcy, conditioning tells you to pick door number one.
One alternative that has recently been gaining speed is credit repair. I have a friend who had a credit repair business. His motto was, “Just because you owe it doesn’t mean they can show it.” He made a lot of money scamming people who just want credit repair, not bankruptcy. If you could just make one more purchase over time everything will change, right?
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Attach proof if identity and social security number. Interestingly this is the same identification needed for your meeting of creditors. You don’t need to explain why it does not belong on your report. Once challenged, the reporting agency contacts the merchant who listed the credit report entry for verification. If they can not verify the accuracy of the entry, it must be removed. Credit repair and bankruptcy perform two separate, unrelated functions.
When a negative item is removed from your credit file you still owe the debt. All removal means is that it is no longer reported. What does an increased credit score mean? For most people it increases their ability to take on more debt. If you already have bill trouble is bills the answer? A better credit score will not stop the collection calls, lawsuits, bank attachments, and garnishments. Credit repair doesn’t give you a restful night’s sleep. It does not make you look forward to answering the phone, or opening the mail. Bankruptcy can do that. More debt will only increase your monthly bills and stress level. Is that really what you need?
It is a simple fact that if you need credit repair there is no better time than right after filing bankruptcy. That way correcting your credit will bring a lasting result, and add to a quality debt free life with real options.