Life after Bankruptcy
NYC/Long Island Bankruptcy Lawyer
The decision of whether or not to file for bankruptcy can be a tough one and will involve a hard look at your financial situation and your options for handling your debt. For many individuals and couples, a personal bankruptcy can be the best option for regaining control of a hopeless situation, which may involve creditor harassment, threatened lawsuits, wage garnishment, and more. Once you have filed and your case is ongoing or completed, what will be the consequences? Understanding the repercussions of a bankruptcy case is essential.
For starters, you will be free from any harassment by your creditors, whether through phone calls, letters, or other forms of communication. Any lawsuits will be halted, including those involving foreclosures, wage garnishments or other legal actions. You will no longer have to struggle with who to pay and how much; your creditors will be dealt with by the Trustee in charge of your case who will make those decisions. When all is said and done, whether you have filed for a Chapter 7 or
Chapter 13, your debts will be wiped out and you will have a clean slate from which to move forward.
Rebuilding Your Credit
Most people who file bankruptcy are already behind in their debt payments and have a negative credit score. For them, a bankruptcy filing can do little damage to their credit. Indeed, the entire purpose of a bankruptcy filing is to give you a fresh start and help you rebuild your credit. Smart Money Magazine in the January 22, 2007 issue has done an excellent article on explaining how bankruptcy restores your credit which may be helpful for you to read. Subsequent to your bankruptcy case, then, you will need to focus on rebuilding your credit. You can build up a good credit rating by paying your bills on time or early and become eligible to buy a home, car, or other big items through wise money management,.
One way to rebuild is to take advantage of secured credit cards which are offered by many financial institutions. Promptly paying these accounts and any other bills over time will raise your credit score. Having a steady income stream and demonstrating that you can pay your bills is the key factor in rebuilding your credit to the point where lenders and creditors will once again extend you credit on reasonable terms.
Millions of Americans throughout history have declared bankruptcy only to come out ahead in the long run, such as Walt Disney, Donald Trump, and Henry Heinz. By following their example of smart and responsible money management, you can too.