In the next few years, the credit scores of people caught up in foreclosures or other financial crises during the recession, will begin to improve substantially. Not only does negative information generally fall off of one's credit record within seven years, but many people in Arkansas and elsewhere have been able to beat that clock and improve their records at a much quicker pace. According to some observers, the loosening of credit has already begun and massive new instances of defaulted credit card debt may be re-emerging.
At the same time that credit scores are rapidly rising for many consumers, real estate prices are increasing. Bank profits are also on the rise, so that a bright economy is once again bursting forth. However, for many consumers the problems of economic survival caused by past crises are still having an impact.
Whether or not there is a dramatic increase in new credit card consumer accounts, the burdens of financial survival for many consumers are an existing phenomenon. The fact is that medical debt is growing and is a constant budget-buster for many hard-working families. A large sector of the populace is burdened with student loan debt that seems to have no exit-strategy.
The fact is that the most effective and clean-cut remedy available for people suffering economic challenges in a changing economy is still the personal bankruptcy remedy. For those with burdensome unsecured debt such as credit card debt and medical bills, Chapter 7 eliminates the debt and wipes the consumer's slate clean in a matter of months. And this is done without crippling payment plans or searching the globe for more and more lending sources. Whether you live in Arkansas or elsewhere, it makes sense to at least learn whether the benefits of bankruptcy can be the solution that will unlock a new, bright economic future.
Source: Daily Finance, "The 7-Year Ditch: Why We're Sailing Toward a New Fiscal Crisis", Nick Clements, Sept. 12, 2014