You can survive personal bankruptcy. The emotional stress, the financial hardship, the new lifestyle; you can do it. While you may feel embarrassed and burdened by your current situation, a surprising 765,863 non-businesses filed for bankruptcy in 2017, so you are not alone. Even the most conscientious of people can get themselves into financial debts that they just cannot get out of.
For this reason, various types of bankruptcy are available to dismiss part or all of your debts and provide you a fresh start.
Unfortunately, most people who experience bankruptcy tend to focus more on the negative impacts than the positive ones. But you can survive personal bankruptcy, here’s how.
Give yourself a break. Just think. If bankruptcy wasn’t necessary in dyer situations, why is it available? The legal system realizes that sometimes you need a free pass. In addition, current laws aren’t as harsh as you think. Many Chapter 7 bankruptcies allow you to keep your property and dismiss most of your debt. If the law is able to give you a break, so should you.
Think smart. Whether it’s the loads of paperwork, legal jargon, or threatening phone calls, it can be hard to keep track of what you’re doing. But in the case of bankruptcy you have to think smart. First, do what is best for your unique situation. Paying back some of your debt and budgeting may be an option, so if you are capable try these options first. Second, there’s no avoiding the paperwork so be prepared. Be accurate and concise with paperwork, otherwise your case may not be approved. Finally, know your rights. Laws protect you from companies making hassling phone calls even before you file for bankruptcy. Don’t give in.
Avoid new debts. We all know that filing for bankruptcy takes a negative toll on your credit. There can be no relief without sacrifice, so you’ll want to be mindful to not create any more negative marks. This means paying your current bills on time, budgeting, and if you need a new loan, researching rates etc. Besides paying current bills, which will slowly improve your credit score, another option is a secured credit card. This type of credit card usually requires a deposit amount equals or close to the maximum credit line. The fees and rates are usually high, and the credit amount is usually low, but your credit history is reported to the credit bureaus, which will create more positive marks on your credit score.
Be patient. It just takes time. In time, the negative ‘bankruptcy’ marks will drop off from your credit report, it just takes time. The faster and the more positive marks you can add, the shorter this time will be. This will also help ensure personal bankruptcy is a one-time pass, and that financial stability is in your future.
The goal of bankruptcy is to provide debtors with a new beginning. If you are drowning in debt and overwhelmed with your finances, personal bankruptcy may be an option for you. The bankruptcy attorneys at Hines Law are experienced and committed to doing what is best for your situation.
Experience and extensive knowledge is at the core of our practice. Call Hines Law today for a Free consultation, we are here to help!