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Debt Consolidation
Debt
Advice:
-Divorce and Debt
-Ideas for Paying Taxes
-Saving Money on Vacation
-Late Payments Increase
-Life
After Bankruptcy
-Stop
Using Credit Cards
-Consolidation
Information
Mortgages
Auto Loans
Personal Loans
Credit Reports
Credit Cards
Home
-Taxes
-Managing Money
-Credit Help
-Checking Accounts
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LIFE AFTER BANKRUPTCY
Many people that file for Chapter 7 bankruptcy are
under the impression that they are starting over
'fresh'. In some sense, it is a fresh start -- a great
deal of your debt will be wiped out. However,
declaring
bankruptcy has very impacting negative results.
In order to develop a positive life after bankruptcy, you
will need to being taking initiative immediately.
Following the advice below will allow you to gain
control of your financial well-being.
Reaffirm your car debt
If you have an
auto loan for which you are still
making payments on, be sure that you sign a
reaffirmation agreement with the auto lender. This means
that you have every intention of continuing to make
payments so that you can keep your vehicle. If you
neglect to make your payments, you vehicle is going to
be
repossessed. Committing to this agreement is a sign
of confidence and will likely result in you receiving
more flexibility with your loan provider. If you intend
on surrendering your car, do not sign a reaffirmation
agreement. You will be financially responsible for
the remainder balance, but will have no vehicle to show for
it.
Develop new lines of credit
After your bankruptcy, one of the first things
you should do is
re-establish credit. it is going to be
difficult for you to get approved by traditional credit
card companies and banks. There are secured credit card
offers that are specifically designed for bankruptcy
people. These cards will require you to deposit a small
amount of money in a savings account. This money will
act as your credit line. We suggest checking out the
Orchard Bank Secured MasterCard and the
Imagine Unsecured Gold Card. These are two
credit cards for people with bad credit that are
designed to help re-establish good credit.
Utilizing a secured card will result in an improved
credit rating, ultimately qualifying you for traditional
credit cards.
Clean up your credit report
It is very important that your debts are being
reported as 'Discharged in Bankruptcy' by all three
major credit reporting agencies. It is important that
all of your accounts are accurately being reflected as
terminated. If they are not, take initiative to
eliminate credit report errors. Check out the
sample dispute letter as well as the
follow-up dispute letter.
Never be a co-signer for anyone!
Once you file for bankruptcy, you will not be
able to file again for another eight years. Therefore,
any co-signed loan that goes into default, will more
likely result in a judgment against you. The benefits
are not worth the risks of
co-signing a loan.
Avoid credit card debt
Many Americans live paycheck to paycheck. Any
extra money is used for paying and
eliminating credit card balances. Having a credit
card balance is likely going to cause you big problems
if you ever have to incur the costs of a financial
crisis, i.e. loss of job, death in the family,
divorce. Not having a credit card balance will
allow you to have the financial cushion needed to
deal with an emergency that is unexpected. If you do have a
balance, stop using the credit card and pay the balance
off as fast as you can.
Be ready to explain why you filed bankruptcy
People that file bankruptcy are often looked down upon
by creditors. However, if you may be able to gain some
sympathy if you can thoroughly detail your reasoning for
filing. Your explanation should be no more than 30
seconds.
Keep a good attitude
When recovering from bankruptcy, it is very
important that you realize that the light is brighter at
the end of the tunnel. Some people may be so down and
depressed after filing that it takes them ten years or
more to
regain control of finances; when in
reality it should only take two years.
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