Why Bankruptcy is Like Winter For Your Finances

Let’s get a few things out of the way right from the beginning: by no means are we recommending bankruptcy for everyone. Simply put, not everyone will qualify for bankruptcy. Your situation might not be dire enough for bankruptcy. Before you get into the bankruptcy process, you need to make sure that you’ve already tried working with the companies in question that are asking you for money. Can you already work out something with them? Does that actually make sense as far as your finances go? If it doesn’t make sense, then you will definitely want to go with the bankruptcy or look into another alternative. On the other hand, when you know that you don’t even have the money to dig yourself out of the hole, and then it’s time to go with a bankruptcy.

It can be difficult finding the money to file, but it’s something that’s really worth doing. Trying to just hope that everything is going to shake out okay isn’t a good idea at all. You have to look at the way things are going in your finances.

The reason why bankruptcy is like winter for your finances is because it freezes everything out. Creditors can’t get to you. You will have bills that you need to pay every month, but they’ll take away a lot of the debt that was on your mind. It’s very important that you at least consider this. It’s very tempting to believe that you will have plenty of access to credit but that isn’t true. Until the bankruptcy is finished, you will not be able to apply for new credit. Of course, you should be aware that after you come out of bankruptcy, you will get offers for credit. Simply put, the credit card companies know that once you really do file bankruptcy, you can’t do it again for quite some time. This means that if you’re looking to get your life back on track, you should be able to accomplish this through bankruptcy proceedings.

Bankruptcy

Bankruptcies are tough. Once you go into the process, there’s only one way out — you have to finish the program. You have to let the time come in and heal everything. If you can’t do that, then you’re going to run into a wide host of problems in the long run. Use this “winter” to get your financial mind back on track. If your spending is out of control, it’s time to actually track what’s going in and out of the house. If you’re only thinking about the next thing that you have to buy, you’re probably not saving for the future. This is a real shame, as saving is one of those things that can really protect us from life’s uncertainties.

Overall, there’s no time like the present to at least look at what’s going on and make changes as you can. Don’t try to feel pressured to do it all in one day. That would just be silly. After all, it took you a lot longer to track up the debt than just a day, so why should getting out of debt be quick and painless? You need time to heal your finances and come out three times as strong.

An Up-Close Look at Chapter 7 Bankruptcy

As we start looking more and more at bankruptcy, we realized that we were overlooking some information that’s very important to our readers. We know that everyone is at different stages in their financial blueprint. Right now if you’re dealing with a lot of debt, you might not want to pursue debt consolidation. You might not want to try to run from creditor to creditor and hope that they’ll work with you. No matter what anyone says, if a creditor digs in their heels and decides that they don’t want to negotiate anything with you, they can do that. Technically speaking, it’s not really in their best interest to go that hardcore with you, but sometimes they do that. It means that you might have to file bankruptcy to get out from under the rock of debt. Yet when do you really decide when to file? Do you file when your debt is at a certain number or something like that? You actually want to make sure that you think about the type of debts that you have. If you know that the debts that you have will fall off in a bankruptcy, then it’s really in your best interest to make sure that you really do drop those debts as soon as you can.

But what about bankruptcy? Generally speaking, unless you have a high income, Chapter 7 is definitely going to be the way to go. Why?

It’s simple: Chapter 7 bankruptcy is essentially a very large liquidation sale. You might have seen a few businesses in your area do something like this — they sell off most if not all of their assets and then use the money to pay debts. This is the same principle except that once you go through the process you’re discharged and you come out with a new credit life. Is it all rainbows and sunshine? Definitely not. There are going to be times where you wonder why you filed for bankruptcy at all. Your credit is going to take some time to heal, but that’s okay. The longer it takes your credit to heal, the easier it will be on you to learn new credit habits. You will want to inhale as much as you can on the world of personal finance. Budgeting, saving, stocks, investing, and real estate — it’s all finance, and it’s all things that you will need to know. You might have gotten yourself into high debt because you really didn’t understand everything. Once you’re an adult, the excuse of ignorance is actually not an excuse at all — people will want you to know things. They will expect that you know what you’re doing. If you truly don’t know, then you have no business entering into new agreements, right? Right! That’s why the time after bankruptcy is really a good time to start evaluating your life and figuring out where you want to go next.

The nice part about the bankruptcy laws is that once you do indeed file bankruptcy, all of the collection actions against you stop cold. Creditors and bill collectors aren’t even allowed to call you. They need to do business with your attorney, and trust us — you’ll definitely want to get an attorney. There are some cases of DIY bankruptcy, but playing with your family’s future is not a DIY project that we recommend you take on. it’s better to start thinking about the type of life you want to have, and then realizing that it’s better to entrust your future to a professional that’s definitely “been there, done that” more than just a handful of times. Most attorneys that deal with bankruptcies actually have a lot of experience in the matter, and they can catch things that you might miss otherwise.

What happens in a Chapter 7 bankruptcy is that there is a trustee. What, you didn’t think that the courts would expect you to go through your own assets and sell them, would you? That would be hard to actually make sure that every filer is as honest as possible. Yes, that means that you’re going to have someone getting very intimate with your financial details. In fact, you’re going to have quite a few people that will know the “dirty details” of your debts. However, you can’t get worked up and start worrying about that at all. You want to make absolutely sure that you’re being as open as possible. Just like attorneys, trustees are very good at finding out information. If you are shown to have held anything back in hopes of keeping it — like trying to hide assets with a neighbor or a friend or even a family member, you’re in for a lot of trouble.

You don’t have to lose all of your assets in a Chapter 7 bankruptcy. You will just need to make sure that you actually look into the matter with your bankruptcy attorney.

If Chapter 7 sounds like a breeze, it’s definitely meant to be that way. It’s estimated that over 65% of bankruptcies done are actually under Chapter 7, which means that there are good chances that you’re eligible for this type of bankruptcy. People that own corporations are going to want to choose a different path for removing debt. Bankruptcy is still possible, just not under this code.

Overall, now is a good time to review your options and see if bankruptcy is even the right track for you. Why not check it out today for yourself?

Do Secured Cards Really Help You Build Credit After Bankruptcy?

What is the best part of bankruptcy? Of course, if you’re still thinking about declaring bankruptcy you might feel like there’s never any positivity to be found with the process of bankruptcy, but the truth is that you actually have a good life after bankruptcy. Think about it — once you declare bankruptcy and go through the process, your bankruptcy is discharged and you never have to really go through bankruptcy again. You don’t have to worry about the debt collectors, and you definitely don’t have to worry about your wages being garnished. Yes, your credit score takes a beating temporarily, but there are ways to fix that. After all, you have to start rebuilding your credit somehow. You will have a clean slate to work with. Also, you might surprised at how well your new creditors will work with you even through you’ve been through bankruptcy. They realize that you cannot declare bankruptcy again for 10 years, so it means that you will have to pay your debts again.

So, the question today is really how can you build your credit quickly after bankruptcy? The answer is definitely secured credit cards — they are a perfect way to rebuild your credit after bankruptcy because you will come to a point that you have some savings. You can always pick up secured credit cards — they are open to anyone that can make the deposit.

Deposit? Well, we hate to burst your bubble but the truth is that you will have to get a deposit together in order to get a credit card of this type. The deposit can range from $100 all the way up to $500, but it really is better to drop in as much money as you can. That will give you the most credit line possible.

Just because you’re getting a new credit card doesn’t mean that you get to go crazy with it. As long as you start thinking about the things that you really want in life, you’re not going to go crazy with your credit cards. Isn’t that what really put you into problems in the first place? It’s better to think sensibly about credit cards.

It might seem like it’s hard to build credit with secured credit cards, but there will come a point where it’s very easy to move forward. You see, what you’re actually building is trust with your new credit card companies. You’re going to come to a point where you will show that you can be trusted with higher lines of credit. That means that you will have more credit power and also a higher credit score. [Continue Reading…]

How Debt Programs Are Great Help For You Paying Back Outstanding Debts

You need to take the time to learn all the facts concerning debt programs before you look for help in your finances. Structured payment plans can be useful, but you need to show caution when it comes to taking advice. Find yourself a company of good reputation, then you can trust that you are receiving honest and reliable advice and not end up in worse shape than you are now.

You can lower our stress level and sleep easy again. You want to learn what it’s all about so you have a better idea of the whole process. This way you’ll understand how to get good expert advice, and not to rush into anything. Weigh out the pros and cons and all the possible risks.

Just because your credit rating improved doesn’t mean it’s time to run back to using them same as before. You want to be more responsible this time, especially if you want to get into your own debt management program. This will help to rid yourself of debts much easier and get lower interest rates on what you owe. Many times they can get our late fees dropped altogether.

If you feel like you’re in a panic then don’t. You aren’t the only one who’s been in this position. Many people are seeking out debt management programs. Try locating a tried and true company who has helped a lot of people already to get through the entire program.

Don’t be worrying about bankruptcy because they will take everything under their control. They will keep you from going further under. You might have had some bad experiences like losing a job or divorce, but your solution is out there.

Another good thing is the number of various programs you have to help with your circumstances. You can find tips and good hints to help you learn the in’s and out’s of debt programs. They are a big help to a lot of people just like you. Before you know it you will have taken back control of your life. It will be quite a liberating feeling. So don’t let the gloomy clouds cause you to fear, help is around.

Once you’ve found the relief you need you’ll wonder what all the fuss was about, but don’t take it for granted. Do it right and do comparisons between several debt companies before deciding on one. Applying online is one of the best and most convenient ways of locating good reputable companies.