There Is Life After Bankruptcy
There is a way to reduce your debt and not lose everything you have worked for all your life. Chapter 13 bankruptcy can do just that. It allows you to pay your debtors over a five-year period with little or no interest incurred. There is one catch however; you have to have a regular income. There are other criteria that you have to meet, but the regular income is the most important. To find out if you qualify, you will need to contact a bankruptcy attorney. He will be able to lead you through this process with ease.
In filing a Chapter 13 bankruptcy, an attorney can help you determine if this is the best way for you to go. When it is determined that you should go this way, he will assist you in making a budget. This will help in deciding the amount of payments you will be able to afford. He will also help you determine the best way to deal with your creditors and assist you in getting the methods set up to do so.
Now that you have made these decisions, you and your attorney will need to complete a plan for the Chapter 13 and complete the forms required by the courts to get the procedure started. These forms can now be filed with the court systems. A filing fee will be required to do so. Once you file your forms and pay your fees, make sure that you attend all meetings with the creditors and court appearances. Another important point is to make all the required payments and make them on time. You need to remember that you are helping yourself and your family get back on track. Once you have paid all the required payments, you will obtain a discharge from the creditors and court system and your plan will be terminated. You didn’t get yourself into this situation overnight and you won’t be out overnight but you will get out.
Bankruptcy does not doom you too a life of credit damage and shame. In fact you receive a fresh start to prevent financial crisis from reoccurring. Law can report your bankruptcy as well as the discharged debts associated with your bankruptcy on your credit report for up to 10 years after the filing of your claim. According to the Fair Credit Report Act, this information is legal but your discharged debts must show a zero balance, showing that you the debtor no longer owe for any of the discharged debts.
Having these past credit blemishes will not keep you from living life as you normally would. You can still purchase a home. For most people who have filed bankruptcy, 18 to 24 months after bankruptcy has discharged debts, these same people can then qualify for a home loan. Past financial trouble is not nearly as big of a concern as the down payment and your income stability.
You can also still receive credit cards after bankruptcy. It is advised that after filing bankruptcy, you should wait a minimum of one year prior to receiving a credit card. Be cautious and make all of your payments on time. Do not put yourself back into the same financial position that would allow bankruptcy to reoccur. After filing bankruptcy you cannot do so again for a time period of ten years. If you have filed bankruptcy before or are considering it, be wary of credit cards and loans.
You can rebuild your credit and purchase homes, vehicles and own credit cards after bankruptcy. You just have to create a budget, stick to that budget and make all of your payments on time. Become money wise and spend resourcefully and life after bankruptcy will be a breeze.