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What Life Is Really Like After a Texas Bankruptcy

December 21st, 2018 at 6:36 pm

TX bankruptcy lawyer, TX chapter 7 attorney, Coming to the decision that a bankruptcy is your best option was probably not an easy journey. Bankruptcies still tend to have a negative stigma in today’s world, but for some people, it’s the best thing they could have done for themselves. Most people know what goes on when you are filing for bankruptcy and what that means, but what happens after a bankruptcy is often lost in the shuffle. Many people have their ideas of what life after bankruptcy is like, but those ideas are often muddled with unrealistic expectations. What really happens after a bankruptcy can change depending on your situation, but ultimately, your actions have a lot to do with it.

You Might Have to Change Your Lifestyle

The type of bankruptcy that you file for will have a lot of bearing on your lifestyle after you have completed your bankruptcy. In a Chapter 13 bankruptcy, you will be required to pay some or all of your debts with a repayment plan over three or five years. This means that you will have less expendable income and will have to devote more of your money to pay off debt. If you filed for a Chapter 7 bankruptcy, the majority of your debts will be forgiven, but that does not mean you can take up a frivolous lifestyle. You should be wary of spending too much money on unneeded items at your bankruptcy, no matter the kind.

You Will Probably Have a Hard Time Getting Credit or Loans

To lenders, a bankruptcy signals that they might not get their money back if they lend it to you. After you have gone through a bankruptcy, you will most likely be seen as a high-risk borrower, meaning that many banks and lenders will not even consider loaning money to you. The lenders who do consider allowing you to borrow money will often charge you very high-interest rates in order to make up for the high-risk factor.

You Should Start to Build a Savings Account

Opening and maintaining a savings account is an easy way to begin making your financial picture a healthier one. Even just putting away $5 or $10 a week can make a difference, especially if you have not had a savings account before. Having a little bit of money set aside for emergencies is always a good idea.

Our Boerne Bankruptcy Attorney Can Help Set You Up for Success

Many people come into bankruptcy expecting things to be a certain way after everything is said and done. Like many things, life after bankruptcy is not always what it seems. At the Law Offices of Chance M. McGhee, we can help guide you throughout your bankruptcy process. Our experienced New Braunfels bankruptcy lawyers will make sure the decisions you are making are in your best interest and beneficial fpr you. To schedule a free consultation, call our office today at 210-342-3400.

 

Sources:

https://www.bankrate.com/finance/debt/life-after-bankruptcy-1.aspx

https://www.investopedia.com/articles/pf/07/after-bankruptcy.asp

How Bankruptcy Can Be the Start of a More Secure Financial Life

October 27th, 2014 at 9:46 am

bankruptcy solutions in Texas, San Antonio bankruptcy attorneyLet us redefine the popular yet misguided perspective of bankruptcy. First, here are the facts: Bankruptcy  may have a negative impact on a credit score and will stay on record for 10 years. Lenders will consider someone who recently went through bankruptcy as a risk and will be less likely to loan  money. According to Bankrate, it is even possible to see insurance rates rise. Due to these conceptions, many view bankruptcy as a stressful and that it is a difficult way out of debt. But, this does not have to be true.

Bankruptcy is an opportunity—even a tool—that grants debt relief while teaching some valuable financial lessons. There are a variety of reasons why one might consider bankruptcy, and the best chapter to file depends on the circumstances surrounding the debt.

What You May Learn While Going Through Bankruptcy

Different forms, or chapters, of bankruptcy offer different solutions to getting out of debt. What they all have in common, however, is a direct lesson in financial security—both literally and figuratively.

First, applicants for bankruptcy must go through some basic monetary schooling before completing the process. This includes credit counseling, as well as debtor education, which offers lessons, advice and tips for maintaining finances.

Living After Bankruptcy

After going through the process of bankruptcy, the real work is only half complete. Filers may need to commit to a lifestyle that incorporates less spending and fewer luxuries. Learning to live off of income is one of the first steps in this journey. For those with limited income, the transition can be quite difficult.

Establishing credit is another concern for those who have recently declared bankruptcy. For the most part, a secure line of credit is the first way to start. By making responsible purchases and paying them off on time, it is possible to move on to a regular, unsecured credit card with relatively low amounts of interest.

Bankruptcy offers the opportunity for debtors to attain financial stability. If you feel that declaring bankruptcy is the solution for you, having a San Antonio, Texas bankruptcy lawyer with you every step of the way can be beneficial. For the past 20 years, the Law Offices of Chance M. McGhee have helped clients break down their financial hurdles. Contact us today at 210-342-3400 for a free consultation.

Call today for a FREE Consultation

210-342-3400

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