Succeeding after personal bankruptcy can be difficult, so how can you succeed after? No matter if you filed for Chapter 7 or Chapter 13, no matter if you faced foreclosure or thousands in medical bills, this guide defines how you can live life normally after bankruptcy.
Chapter 7 Chapter 7 bankruptcy is very different from Chapter 13. You are typically discharged of all debts in a matter of month. If you filed this, you rarely lose assets but it's possible. In some cases, you may have filed to eliminate debt such as medical and credit card. It may be difficult to get loans right after filing. You may face a new series of bills. The key is to stay on top of your current bills, as you cannot file again for some time.
Chapter 13 Chapter 13 actually takes 3-5 years, much longer than Chapter 7.This is preferable for home owners who fear foreclosure. For Georgia residents, foreclosures are a reality, being some of the highest rates int the country. However, thousands of Georgia home owners are successfully filing Chapter 13 to save their homes. Since Chapter 13 takes much longer, as long as you stay current on your mortgage and other bills, living life after should be easier.
Getting Loans If you want a loan after filing, you may run into some trouble. After all, depending on what you filed for, you just consolidated or discharged your debts. That may hurt your credit; bankruptcy stays on your credit report for 10 years. To get a loan, you often need a cosigner such as a parent. While in some cases you are still allowed to buy homes and cars, it's important not to get in over your head again.
Keeping Jobs The best way to live life after bankruptcy is to have a steady income. Say you are married and have one child; you filed because you lost your job. You of course will be looking for new work, but be sure it can keep you away from having to file again. This is also very important with Chapter 13, as you have to stay current on your bills as part of the debt management plan. Getting and keeping a job should be a priority.
Current on Bank Account You should maintain your bank account balance, being very frugal. You should always pay off credit card charges the same month so you don't pay expensive interest rates. This may sound obvious--keep money and pay off bills--but many get in over their heads right after filing. In order to rebuild your credit, no bill should be late, all credit card charges should be paid immediately, and you should not make too many large purchases.
Get Comfortable It's been said bankruptcy is the most difficult economic crisis for Georgia residents. Bankruptcies are still on the rise even though job creation is going up, notably in Georgia. However, you are getting a fresh start. This is not the end of the world. And you can avoid the mistakes you made before.
0 comments:
Post a Comment