Although many believe that bankruptcy can serve to ravage one’s finances indefinitely, in many cases, filing is preferred over debt consolidation. In Stuttgart, AR, the Bueker Law Firm provides clients information on this and many others issues related to debt management. As a result, these bankruptcy attorneys have forged a reputation for smart, dedicated counsel, even when they’re clients are up against seemingly endless debt. The following are a few reasons why bankruptcy might be preferred when compared to debt consolidation.

Your Credit Score Will Not Be Destroyed by Bankruptcy

While it’s true your credit rating will take a hit after filing, you can begin working towards improving your score almost immediately. In contrast, if you miss payments or are not able to make more than the minimum payment when working with a debt consolidation, your credit score will be negatively impacted for years to come. In fact, a single missed payment can cause your score to falter.

Debt Consolidation Is Not Viewed More Favorably

Additionally, banks and other lending institutions will not look at your financial situation more favorably simply because you entered into a debt consolidation program. You’re still considered to be in default in a debt consolidation program, which will affect your ability to access good terms on loans, or even be approved for loans at all.

Bankruptcy Can Discharge Most of Your Debt

Lastly, bankruptcy can often discharge most debt, leaving you with a clean financial slate. While you’ll have to work to change any poor spending habits, you will be able to start fresh while you take the proper steps towards financial stability. With debt consolidation, you’ll still be held liable for any debt you incur, while also suffering from the negative ramifications of being mired in debt.

If you need help with debt in Stuttgart, don’t delay; contact the Bueker Law Firm today to learn more about how you can get your finances back on the right track. Call (870) 673-1313 today to schedule your consultation with a skilled bankruptcy lawyer. You can also use the online contact form to get answers to your most pressing legal queries.