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The Benefits of Bankruptcy

August 13th, 2018 at 3:40 pm

Texas bankruptcy attorney, Texas chapter 7 lawyerAlthough it is a decision that should not be taken lightly, bankruptcy is not the “end of the world” even though it can feel like it while you are busy deciding whether or not to file. With a constant and unyielding dark cloud looming over your head of unpaid debt – a detail the incessant calls from creditors will never let you forget – it may seem like there is no light at the end of the tunnel. What many consumers fail to realize is bankruptcy is that silver lining for which they have been searching, rather than an admission of defeat. For most, bankruptcy is often the beginning of a new chapter of life.

You Will Reestablish Credit

Although bankruptcy does appear on a credit report for seven to 10 years, dependant on the chapter filed, it does not mean that lenders will refuse to work with you or your spouse. Most people who file for bankruptcy can apply for a mortgage in as little as one year, so long as they work diligently to prove their picture of financial reliability.

In fact, mortgage lenders are sometimes willing to reduce the waiting period if the reason for the bankruptcy was a one-time occurrence, such as a death, job loss, or a divorce. Credit cards even begin sending you offers shortly after bankruptcy.  Most proposals for credit cards during financial hardship and after bankruptcy include high percentage rates and poor terms. Financial advisors suggest applying for a secured card to build your credit without the outrageous fees.

A No-Frills Lifestyle Is Key

Whether you file for Chapter 7 or Chapter 13, the last thing you want to do is find yourself in the same situation. The best course of action is to slim-down your expenses and adopt a no-frills lifestyle. Keeping your “eye on the prize” of being debt-free should be your primary motivating factor. A new car and a boat may sound like a great way to celebrate your new found financial freedom, but an inexpensive bottle of champagne will prove to be more budget friendly. A good rule of thumb to consider is: if you cannot pay for the item in cash, or it causes you to not pay for other necessary things in cash, you should pass on the offer.

Discuss Your Concerns with an Experienced Attorney

Most people wait to file for bankruptcy until it is nearly too late. Clients explain that their reasons for delaying the decision include they thought it would get better, were fearful of the social stigma, or thought they would lose their home. Most of these concerns typically fall to the wayside once consumers experience the benefits of living a debt-free lifestyle.

If you are struggling financially, a New Braunfels bankruptcy attorney can answer your questions. Sometimes, all you need is a neutral, non-judgemental third party to which you can verbalize your concerns. Law Offices of Chance M. McGhee understands the sensitivity of your situation, as well as the frustration of the constant collection calls. If you need honest and reliable answers, call us today at 210-342-3400 for a no-obligation consultation.

 

Source:

https://www.nytimes.com/2012/09/16/realestate/mortgages-life-after-bankruptcy.html

Written by Staff Writer

August 13th, 2018 at 3:40 pm

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210-342-3400

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