Bankruptcy is an uncomfortable subject for a variety of reasons. The most obvious is the potential havoc it can wreak on your finances. Running a close second is the negative stigma which is often attached to the process. This negativity is important to mention because strong emotions can sometimes lead to unsound financial decisions with devastating impact.
Bankruptcy becomes a viable option for someone who is “upside down” in terms of their money flow. In other words, when a person has more money going out each month than coming in, bankruptcy should be considered if no reversal of this negative flow is within sight. The longer someone waits to look at the various options available, the more serious his or her situation may become.
One of the worst things people can do in this situation is to borrow more money to try and pay off their debts. On paper, this is clearly an unwise financial decision. In the real world, however, it is very common for individuals to pursue this strategy in an attempt to wait to hold off on filing for bankruptcy. On the surface, this is certainly a noble notion; however it can often compound the problem and serves only to delay the inevitable.
If bankruptcy is the only option, seek out a reputable bankruptcy attorney and credit counselor. Reliable references are essential in this case, because experienced professionals greatly increase the chances of a successful bankruptcy experience. It’s that simple.
When filing for bankruptcy, be completely honest and accurate regarding every aspect of your financial situation. This includes any changes to your income which may occur throughout the process. Bankruptcy is a federal procedure, adjudicated by real judges, and scrutinized by representatives who coordinate with the Department of Justice, the FBI, and the IRS.
Here are some additional steps you can take to make the bankruptcy process as painless as possible:
1. Save all paperwork regarding your bankruptcy, and keep it organized. This will prove beneficial after your bankruptcy as you now have all of the pertinent information in one place. Also, be sure to write down your discharge date. It’s surprising how many people forget to do this.
2. Establish a household budget. This can be accomplished in many ways, but there are several inexpensive computer programs available on the market today. For instance, the Debt Eliminator, Equity Accelerator is an awesome tool for as little as $40 (email info@visioncreditservices.com to get your copy today).
3. Throughout the bankruptcy, do your best to not only live below your means, but to put aside as much money as possible. You never know what you may need it for once the process is completed.
4. Be prepared for a barrage of junk mail. There will be sharks on the loose who are hoping to capitalize on your need for credit.
Tips for Rebuilding Credit:
1. Meet with a credit repair specialist. Not only can they help you improve the information reported on your credit report, they can advise you on specific ways to rebuild the credit you lost as well.
2. Get a secured credit card. Secured credit cards allow for the cardholder to deposit a said amount of money into an account, thus establishing the spending limit of the card. Some of these cards will reward responsible borrowers by upping the limit without an additional deposit. Some will even convert the account into a traditional credit card. (Be wary of offers of “easy credit” or any card which asks you to call a 900 number. You will be charged for the call.)
3. If you must get a car, focus on transportation as opposed to style. Buy an inexpensive, used car, and try to get financing for it. It’s a good idea to figure out what your budget allows in terms of a dollar amount first. This means obtaining financing prior to looking for a car.
While it does take time, there is definitely life (and credit) after bankruptcy. If you’re in serious financial trouble, the trick is to get the help and advice you need from professionals you trust. There are a number of good resources to assist you in this process like Bankruptcy “Ain’t” Broke from Theresa D. Royal, CMP (email info@visioncreditservices.com to request your copy today). We hope this information was helpful and remember, although bankruptcy is a serious matter it is not the end of the world. There is life after a bankrutpcy! Bankruptcy is an uncomfortable subject for a variety of reasons. The most obvious is the potential havoc it can wreak on your finances. Running a close second is the negative stigma which is often attached to the process. This negativity is important to mention because strong emotions can sometimes lead to unsound financial decisions with devastating impact. Bankruptcy becomes a viable option for someone who is “upside down” in terms of their money flow. In other words, when a person has more money going out each month than coming in, bankruptcy should be considered if no reversal of this negative flow is within sight. The longer someone waits to look at the various options available, the more serious his or her situation may become. One of the worst things people can do in this situation is to borrow more money to try and pay off their debts. On paper, this is clearly an unwise financial decision. In the real world, however, it is very common for individuals to pursue this strategy in an attempt to wait to hold off on filing for bankruptcy. On the surface, this is certainly a noble notion; however it can often compound the problem and serves only to delay the inevitable. If bankruptcy is the only option, seek out a reputable bankruptcy attorney and credit counselor. Reliable references are essential in this case, because experienced professionals greatly increase the chances of a successful bankruptcy experience. It’s that simple. When filing for bankruptcy, be completely honest and accurate regarding every aspect of your financial situation. This includes any changes to your income which may occur throughout the process. Bankruptcy is a federal procedure, adjudicated by real judges, and scrutinized by representatives who coordinate with the Department of Justice, the FBI, and the IRS. Here are some additional steps you can take to make the bankruptcy process as painless as possible: 1. Save all paperwork regarding your bankruptcy, and keep it organized. This will prove beneficial after your bankruptcy as you now have all of the pertinent information in one place. Also, be sure to write down your discharge date. It’s surprising how many people forget to do this. 2. Establish a household budget. This can be accomplished in many ways, but there are several inexpensive computer programs available on the market today. For instance, the Debt Eliminator, Equity Accelerator is an awesome tool for as little as $40 (click HERE to get your copy today). 3. Throughout the bankruptcy, do your best to not only live below your means, but to put aside as much money as possible. You never know what you may need it for once the process is completed. 4. Be prepared for a barrage of junk mail. There will be sharks on the loose who are hoping to capitalize on your need for credit. Tips for Rebuilding Credit: 1. Meet with a credit repair specialist. Not only can they help you improve the information reported on your credit report, they can advise you on specific ways to rebuild the credit you lost as well. 2. Get a secured credit card. Secured credit cards allow for the cardholder to deposit a said amount of money into an account, thus establishing the spending limit of the card. Some of these cards will reward responsible borrowers by upping the limit without an additional deposit. Some will even convert the account into a traditional credit card. (Be wary of offers of “easy credit” or any card which asks you to call a 900 number. You will be charged for the call.) 3. If you must get a car, focus on transportation as opposed to style. Buy an inexpensive, used car, and try to get financing for it.
It’s a good idea to figure out what your budget allows in terms of a dollar amount first. This means obtaining financing prior to looking for a car. While it does take time, there is definitely life (and credit) after bankruptcy. If you’re in serious financial trouble, the trick is to get the help and advice you need from professionals you trust. There are a number of good resources to assist you in this process like Bankruptcy “Ain’t” Broke from Theresa D. Royal, CMP (click HERE to request your copy today).
We hope this information was helpful and remember, although bankruptcy is a serious matter it is not the end of the world.
There is life after a bankrutpcy!
