Gudeman & Associates Winning Fans & Helping People With Bankruptcy

Gudeman & Associates, serving residents in South East Michigan bring decades of expertise to bankruptcy. Thanks to fantastic client relations and large-scale success, the team at Gudeman & Associates, has been winning praise from past clients on their Google reviews and Facebook page. The team felt like giving back and dropping some expertise to help people who may be struggling with debt.

While it is difficult to tell exactly how far a person’s credit score will fall after they file for bankruptcy, but it’s almost certain that doing so will have a negative impact on their ability to secure a loan. This is one of the many fears people have with regards to filing bankruptcy.

The experts at Gudeman & Associates know that keeping a good credit score is essential in today’s market. Securing a loan if a person has a low credit rating becomes more challenging. Bankruptcy is not something to undetake without legal expertise.

Always speak with a bankruptcy expert like Gudeman & Associates to determine if the filing is in a person’s best interest.

Many people may not want to ruin their credit score by filing for bankruptcy. A mock scenario created by data analytics company FICO back in 2010 showed how two different credit profiles could lose credit score after filing for bankruptcy, based on their initial credit rating. Someone with a 780 credit score could lose up to 240 points, while someone with a 680 credit score could lose around 150.

The person with the higher credit loses the most points, but the credit scores tend to end up around the same place, which ranges from 540 to 530. Experts tend to agree, that someone who already has a credit score in the 500-range may lose even less after bankruptcy because there’s a bit less of a credit score to protect.

But it’s important to keep in mind that this is just an example. A person could lose less or more. There’s no way to know for sure unless bankruptcy was already filed.

Lending institutions are less likely to approve loans for people with bad credit and no credit. Their whole businesses model is set out to reduce risk, and if someone proves a higher risk to pay back the loan, a higher interest rate is applied. However, even after filing for bankruptcy, it is possible to rebuild someone’s credit score.

The team at Gudeman & Associates agree that while bankruptcy may sound bad, in many instances it is the best option for people struggling with debt.

Alternatives to bankruptcy exist, like debt repayment, settling, and consolidating. In order to find the option that works best for a particular person, a financial advisor is necessary, as well as an attorney who can give them the right legal advice. Gudeman & Associates, can provide the right information regarding a person’s debt, the option of filing for bankruptcy, and securing a loan afterward.

Work with Gudeman & Associates Attorney’s today and find out if bankruptcy is the best option, or if there are better alternatives to be considered.