With how the economy’s volatility has increased over time, it is normal for an individual to be concerned about their credit rating and what a poorer score could mean as the economy swells and retreats. In an era where seemingly every day a major company releases a press release mentioning that they are culling their workforce or closing down some of their facilities, this fear is logical and palpable. It does not help that there are institutions like the Internal Revenue Service (IRS) that have their workforce coming through taxes in the off chance someone puts in incorrect information. In addition, what happens if you lose your job and you have to declare bankruptcy? What type of bankruptcy do you need to declare?
Finance questions pile up as quickly as they can be answered
Even if you figure out the type you should officially declare, what sort of debts can be discharged? What creditors are still able to get their pounjd of flesh? The sheer amount of technical information that someone needs to possess to successifully navigate these concerns is mind-boggling. While one may be a bit wary of putting out thousands of dollars for a legal professional, their expertise is essential to ensure you are able to traverse these difficult steps and enter back into a healthy financial outlook. After looking around community websites and polling local inhabitants on your social media profiles, you’ll find someone that can give you a definitive answer to questions like will debt reorganization damage my credit rating ? Many of these questions are tremendously relevant to an individual filing alone, but what happens if you are someone that owns a lot of real property (e.g. land, vehicles, houses) in different states? Let us get a little more complex. Imagine a situation in which a married couple starts to experience tremendous financial woes. At some point, the couple dissolves the marriage. Depending on how far behind this couple has gotten in paying back their debts, the creditors may have a claim to the property of the marriage at a level similar to (if not greater than) the two parties comprising the original couple.
Final thoughts and a call for action
As always, the articles I write about legal matters are only to be taken for entertainment purposes. They are not legal advice of any quality. If you are concerned about what could happen about your credit rating, locate a fiscal or tax lawyer and get yourself a meeting booked. Even if one fancies themselves to be fairly well educated, there is something to be said about the ability of a legal team that solely focuses on tax and finance law. They will be able to represent you and generate a response to any creditor or taxation department that would far outstrip anything that you could conceivably generate. If any of our readers have had experience with debt reorganization, the declaration of bankruptcy, or very low credit scores, take a second to express your experiences on this post.
