Getting back to good is what it’s all about in my work as an Indianapolis bankruptcy attorney, and really what all the new bankruptcy laws in Indiana are designed to help you do.
All my colleagues in the Zuckerberg bankruptcy law offices talk periodically with financial planners and loan officers at banks and mortgage companies, and I also read financial planning journals. The whole idea is to bring the most up-to-date approach to our work, which is offering Indiana bankruptcy help.
Most people we talk to have more than one credit card, with some having quite a number of them. There seem to be two different schools of thought in terms of paying those off:
- One financial adviser shared with my Columbus bankruptcy lawyer colleague that he tells clients to begin by paying off the card debts that carry the highest interest rates.
- Many magazine advice columns, on the other hand, seem to lean towards paying off the cards with the smallest debts first (in order to gain a sense of accomplishment)m then turning your attention to larger debts.
After twenty five years of helping debtors prepare for filing personal bankruptcy in Indiana, and then helping them emerge from bankruptcy to make a fresh financial start, I have some important items to add to this list of ways to handle debt:
- It’s very, very important not to have any one credit card debt that is above 50% of the credit limit for that card. So, in choosing where to start, debtors must keep that over-arching rule in mind.
- As Steve Bucci points out in the book Credit Repair Kit for Dummies, there are creditors who don’t report to the credit bureaus at all, which means that payments made on those debts won’t help in terms of positive points on your credit score. Bucci lists credit unions, utilities, tradespeople, landlords, and insurance companies, who often don’t want to pay a fee to submit information to the credit bureaus.
As someone providing bankruptcy services in Indiana, I certainly don’t mean to imply these debts shouldn’t be paid, or that there won’t be negative consequences if you don’t (turning off utilities, evictions, harassment, etc.). It simply means that when you’re creating a plan for getting out of debt, you want to focus on generating positive items to appear on the credit report.
- Rebuilding a credit score (either before or after filing personal bankruptcy in Indiana) is about showing you can be responsible in handling credit and that you’re making payments on time. Smaller purchases (hence more manageable repayments) can help you establish a positive repayment history quicker.
Having said all that, I suspect that if you’re reading this page, it may be that your credit standing is NOT in good shape and that your financial life has taken a downward path. Counseling on how to manage your budget may not be of little help now, because your bills are mounting every day.
Any experienced bankruptcy attorney in Indiana would be able to provide budgeting advice, but what you need to know is that an attorney is the ONLY person who can offer the legal advice you need to get you back to good!
Categorised in: Bankruptcy Indiana
This post was written by Mark Zuckerberg