(818) 918-5215
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info@teninalaw.com
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Mon - Fri 09:30am-6:00pm
(818) 918-5215
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info@teninalaw.com
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Mon - Fri 09:30am-6:00pm

Starting Over After Bankruptcy

Starting Over After Bankruptcy

Although filing for bankruptcy can be difficult, it can help people rebuild their credit and start over. Starting over after bankruptcy is very doable. You may find personal bankruptcy a viable option when faced with the difficulties that can arise from job loss, too many credit cards, or unexpected financial emergencies. Depending on whether they file Chapter 7 bankruptcy or Chapter 13 bankruptcy can allow people to start over or to restructure their debts to manageable payments. It can be easy for one to believe that credit is gone after a bankruptcy discharge. In many cases, rebuilding credit can be possible in the first few years of starting over.

A Shift In Attitude

Filing for bankruptcy can have serious consequences. Credit reports could be negatively affected for up to 10 years. These are enough reasons to make people reconsider this option. Fox Business reports that personal bankruptcy is not seen as having the same negative connotations by lenders and banks as in the past. Many people can still get major loans after bankruptcy, despite the negative impact on their credit reports.

Instant Rebuilding Credit

All of your dischargeable creditors are automatically extinguished once a bankruptcy discharge is granted. Some credit card companies might be more open to credit cards if you are trying to rebuild your credit. Credit card companies know that a Chapter 7 bankruptcy cannot ever be filed within eight years of the date of the original bankruptcy. In an effort to improve credit scores, some lenders might be open to lending loans to those who are just starting out. A friend or relative may be able to help you obtain a credit card. They will need to agree to co-obligor the credit card.

To be able to establish that obligations are being met, it is crucial that utility bills and any other monthly bills are paid on time.

Bankrate suggests that you consider these items:

  • Be careful with credit decisions. Don’t apply for credit too fast after bankruptcy or have too many credit cards.
  • Knowing that predatory lenders are looking for people who have just gone bankrupt and how to avoid falling for scams
  • Consider a secured credit card over traditional credit to rebuild your credit score.
  • Avoid financial dangers such as title loans and payday loans
  • Save money for emergency situations every paycheck
  • Negotiating with lenders to get better interest rates periodically

In many cases, bankruptcy is something that should be considered. If you are in default on your bills or are in a cycle of borrowing money and repaying, you will never have the chance to eliminate this debt. An experienced bankruptcy attorney can help you get a fresh start as envisioned by The Bankruptcy Code. This will allow you to eliminate most of your debts, rebuild your credit rating and alleviate the stress that comes with monthly bills. Contact us at Tenina Law for more information on Bankruptcy resolutions today!

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$995 Bankruptcy Promotion

Tenina Law is offering a special promotion to certain low-income and/or low-debt clients.  If you qualify for the promotion, a chapter 7 bankruptcy will cost you only $995 plus the court filing fee.  This is one of the lowest prices you will be able to find in Los Angeles county.