So often, insolvency practitioners hear from debtors that a primary concern of theirs is the impact of an insolvency filing on their credit rating.
In normal terms, everyone’s credit rating is important. It allows you to buy a house, a car, appliances and generally obtain credit. However, at a time when you are facing enumerable calls from collection agencies, receiving threatening letters from other creditors, is this a time to worry about your credit rating? We suggest that this is the time to be concerned with the protection of the assets that you have already acquired. You do not want to risk losing your house, your car or other assets you may have. This is the time to worry about economic survival and not the credit rating.
Indeed, in most cases at this point in time, debtors will have credit ratings that will not be materially affected by the filing. For example, a debtor may fall to the lowest rating once they file but they probably have a rating that is not that much better currently. Normally, only once you have filed and completed your dossier can your credit improve. While creditors may be conservative in granting you credit again, at least they will be confident that you have taken appropriate measures to clean your file and have no current debt.
We urge you to consider your situation as it really is and remove the rose-coloured glasses thinking of other issues. If you feel that things are beyond your finacial control do not waste another minute, at Pinsky Bisson Inc we give it straight, an evaluation is always FREE and can help you see through the forest.