Work with a Debt Resolution Lawyer If You’re Struggling to Pay Off Debt
If you have a lot of debt looming over your head that you can’t pay back, know that help is available. Our debt resolution lawyers are here to help you understand your options and protect you from debt collectors. We can help you if you’re being sued with a debt lawsuit, considering bankruptcy, or need to settle your debt so it’s easier to pay off. Our professionals fight for you so you can get back to normal and start rebuilding your credit after financial hardships.
Contact us now to set up a free consultation and take the first step toward financial recovery.
Debt Problems That Affect Your Credit
There are many ways that struggling to pay back debt can hurt your credit score. This can stop you from things like buying a house, buying a car, opening other accounts, or even sometimes from getting a job! There are many situations where you might have lower credit because of debt, and our attorneys can help you find solutions to move forward.
Charge offs are where you stop paying on debt and the collector sends a charge off to the credit bureau. A charge off means they aren’t confident they’ll be able to get their money back for your debt. Most debt collectors wait until you haven’t paid for six months, but they can send in a charge off at any time, which reduces your credit score.
Debt settlements can also affect your credit. While they’re often better than unpaid debt, they can lower your credit score because you’re paying back less than you owe. Our attorneys can help you reach a debt resolution that works for your situation so you can start rebuilding your credit. Learn more about rebuilding credit after debt settlement.
Debt Lawsuit Judgments
Creditors and debt collectors can sue you if you don’t pay your debt. If you can’t make your payments, typically they will file a debt lawsuit at some point. Just because a debt lawsuit has been filed against you doesn’t mean your credit score will get lower. However, losing the lawsuit and having a debt judgment against you can. Judgments are bad for your credit because they can be active for 10 years and be renewed for additional 10 year periods as long as they go unpaid. Even after you pay them off, they can still affect your credit for up to 7 years. If you’ve been served with a debt lawsuit summons, don’t ignore it! Contact our team to defend you against the lawsuit and prevent a judgment.
If you have too much debt to pay off even if you settle it for a discounted rate, then you may need to file for bankruptcy. Chapter 7 bankruptcy can discharge your debts so you can start a new life. Bankruptcy can affect your credit score for up to 7 years. However, many people actually see their credit scores increase after bankruptcy in 12 to 18 months because it reduces their debt. Taking steps to rebuild your credit can help you recover faster from bankruptcy.
Tips for Rebuilding Your Credit
To rebuild your credit, it’s important to know what affects your credit score. Credit bureaus look at many different elements to determine your score. Some of these include:
- Timely payments
- Credit usage
- Credit history length
- Credit mix
- Credit inquiries
One of the biggest things you can do to rebuild your credit after debt problems is to pay bills on time and in full. Our attorneys can work with you to resolve your debts so this is easier. Making on-time payments is a great way to start increasing your credit score.
Another thing to note is that creditors want to see that you use less credit than you have available. Most experts recommend using less than 30% of your total available credit to improve your credit score.
If resolving your debts closes most of your accounts, then the remaining ones may not be very old, which can also negatively affect your credit. There are several ways you can get more accounts without damaging your credit report. For instance, you can become an authorized user for someone else with a good credit score. There are also many credit cards and loans specifically designed to rebuild credit, usually secured by keeping a certain amount in a bank account.
An additional step to help you rebuild your credit is to monitor your credit report. You can get access to a free copy every year by going to annualcreditreport.com, which is authorized by the federal government to provide you with your credit report.
Monitoring your credit report can help you identify any incorrect information. If you do see issues with your credit report, you can dispute those issues or ask creditors to make corrections to improve your score.
Choose Heston Law Firm as Your Debt Lawyer
The first step to restoring your credit is addressing the unmanageable debt you have. Our team of experienced debt lawyers is here to help you resolve your debts and start rebuilding your financial health. We can help defend you against debt collectors and reduce or resolve your debt so you can move forward with life, stress-free. Contact us today for a free consultation to learn how our team can help you with debt relief.