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TX bankrutpcy lawyerMany people who are struggling with overwhelming debt often hesitate to file for bankruptcy because they are concerned that the bankruptcy will have a significant impact on their credit score for a number of years. They worry that the bankruptcy will prohibit them from ever owning their own home someday. While it is true that bankruptcy will show up on a person’s credit report, it is important to keep in mind that consistently having late payments, missed payments, and charged-off accounts hurt a person’s credit score and their chance at owning a home more than filing bankruptcy will. As long as the person who files for bankruptcy follows these tips, homeownership is likely closer than they think.

Review Your Credit Report

Once your bankruptcy has been complete and debt discharged, you will want to obtain a copy of your credit report to make sure that there are no incorrect debts that should have been discharged showing up. The major credit reporting agencies are required by the federal government to provide people with a free credit report once a year. If you see any discrepancies, make sure to contact your bankruptcy attorney.

Rebuild Credit

Once all your debt has been discharged through bankruptcy, it is important to focus on rebuilding your credit. Remember, your credit was not damaged overnight and it will take time to rebuild.

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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.

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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

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