Regardless of the means by which they seek debt relief, many people will observe some effect on their credit rating as they take steps to rebuild financial strength. But Chapter 7 bankruptcy, Chapter 13 bankruptcy, and debt settlement strategies offer such potent relief to individuals and married couples that this can be merely a speed bump on the road to financial recovery.
For those who, like many Arizona homeowners, have negative equity in real property like a home, investment property or vacation residence, an involuntary foreclosure, loan modification or short sale may be the best way to proceed. A Phoenix debt relief lawyer can help you understand the long-term implications of these options and help you assess which choice meets your unique goals.
A recent study by the Fair Issac Corporation (FICO) took a close look at how mortgage delinquencies impact FICO scores, which are a primary factor in mortgage lending decisions. The study looked at three hypothetical consumers with baseline FICO scores of 680, 720 and 780, and showed an average reduction of about 70 points for borrowers who are 30 days late on mortgage payments.
Not surprisingly, the decrease continues for borrowers who are 90 days late, but the effect is minimal for the borrower who started with the lowest score. However, the most interesting finding was that the FICO score effect was essentially the same for property owners who chose to let the foreclosure process take its course and those who completed a short sale with a deficiency balance (meaning the sale proceeds did not eliminate the amount owed on the original mortgage). Other strategies, such as deed in lieu of foreclosure and debt settlement, had a lesser effect on the credit score.
The study produced similar results when assessing how long it takes for FICO scores to recover. Not surprisingly, it takes considerably longer for a borrower with a higher score to recover from the negative effect of late payments, short sales or foreclosure.
Beyond the limited considerations of hypotheticals, a wide variety of factors play into a proper consideration of whether bankruptcy or another option will best serve an individual’s needs. A consultation with an Arizona bankruptcy attorney can help potential clients make informed choices that target future financial health.
Why should you hire our firm to represent you in bankruptcy?
Great question. Here are a few reasons:
- 1. Bankruptcy is our sole area of practice. Attorney Wright has over 10 years of experience in the field of bankruptcy and has helped over 1000 people successfully file.
- 2. Attorney Wright has an accounting background that is useful in analyzing complex financial documents. Prior to law school he obtained a degree in accounting from the University of Wisconsin School of Business. He exercised his strong numerical aptitude in the field of accounting, including several years with The Kohler Co., before ultimately deciding to pursue a law degree.
- 3. New clients meet with an attorney during their first visit. We understand your time is valuable. It is important your questions are answered quickly and accurately so you can take appropriate steps to secure a better financial future and eliminate fear and stress.
4. In business, referrals are the highest form of professional compliment. We frequently receive referrals from other lawyers and previous clients.
- 5. Our firm is small which enables us to focus on quality over quantity. We don’t have billboards on the I-10 or banners affixed to public transportation. Our approach is a bit more understated. We care about people and doing things right and it shows in our low employee turnover and positive reviews.
- 6. Perhaps the most important consideration is the cost of filing bankruptcy. We continuously assess our fees to ensure we offer fair and competitive pricing. We want to offer you a deal without sacrificing the quality of your experience.
Ways we can help…
What our clients are saying…
Mr. Wright and his staff were amazing. They made a negative situation a lot better and turned it into a positive. Could really tell they care helping people and I will refer their Phoenix Bankruptcy Attorney firm to friends and family. Thanks again.
I called around looking for the right bankruptcy lawyer and came across Benjamin Wright. He personally called me for the consultation seeing how I live in Kingman AZ. He was very helpful from the start and his staff was very friendly and explained any questions I had, sorry for all the questions. I would definitely recommend Wright law offices, and I do!! Thanks for everything, you made what seemed like a hard thing to do simple!! You guys rock!!!
Great lawyer, he really helped my mother out of a jam. She was totally new to bankruptcy and he talked with us for about an hour and a half to make sure she wouldn’t be worried.
Ben is a kind and down to earth attorney. He worked around my busy schedule as a single mom (school, full-time job, and daycare pick up and drop off times). He explained absolutely everything to me and was good about e-mailing. I am writing this review as a THANK YOU.
I had a very positive experience with Attorney Wright. He or his staff returned my e-mails and calls promptly (even after business hours occasionally). His fees were reasonable. He was patient with me when I showed up in court missing an important document. He is aggressive, but fair and nice.