I received two calls last week on warranties, one from a contractor and the other a homeowner. Without going into specifics, the scenario is something similar to this:

             Whoever furnishes labor and/or materials into property improvements during the construction process are given lien rights against the property in the event they are not paid by the party who has promised to pay them.  The public policy behind mechanics’ lien laws is:

Often a bankruptcy will improve your credit rating.  If you have defaulted, had a car repossessed, or have been sued on a credit card your credit is about as low as it can get or it will be very soon. A bankruptcy will stop those lawsuits cold in their tracks.

Yes, a bankruptcy stays on your credit report for 10 years from the date of discharge. But, within one year, the FHA, VA, HUD and many other respectable creditors and guarantors will lend to you.  No, your interest rate won’t be the lowest available, but it will be reasonable.  As time goes on, less and less attention is paid to the bankruptcy, especially if you have regular income and pay your bills timely.

Most importantly, if you don’t do something now, your credit is going to stay worse than a bankrupt’s credit, probably forever.  Sooner or later, you will have to take steps to clean up your debts.Bankruptcy amounts to a “fresh start.”  It wipes all of your debts clean (except debts that are not “dischargeable.”  Only a garnishment of your wages would be worse than a lawsuit in the eyes of the credit world.  A bankruptcy can often help, not hurt. Ask your attorney.  Help is just a phone call away.