For anyone that has ever been drowning in debt the idea of filing for bankruptcy has probably crossed their mind.
Although some people tend to shy away from the process, the truth is that bankruptcy is a great financial tool for getting back on track.
Even better, the clean slate that a debt discharge provides is a big step on the path to financial freedom.
Your Financial Future Having your debts resolved in bankruptcy is a fairly simple matter.
In a Chapter 7 filing, much of your debt will be erased with little expense to you.
While some of your nonexempt assets may be liquidated to satisfy debt payments, most people find that this process is minimally intrusive.
Further, much of your essentials or prized items will be protected through the exemption laws.
In a Chapter 13 filing, your debts are rolled into a single monthly payment that is divided among priority creditors.
Although these payments can be spread over a period of up to five years, the process can protect all assets while debts are resolved.
Further, having repaid at least a portion of the debt reduces future credit challenges.
Once your debts have been discharged, you are in a unique position to take control over your future finances.
Have you begun saving in an emergency fund? Do you have a specific budget outlined for your monthly expenses? Are you using any tools to help you keep track of your money? Did you check your credit report? These are all important aspects of rebuilding after moving on from a poor payment history.
Keep in mind the principals learned in your debtor's education course and put them into action.
If you haven't already outlined your expenses each month, do it.
Money management requires active participation.
Know your budget limits and spend within your means.
Keep track of your account balance, while also making it a priority to save money.
If you are planning on obtaining new credit again, first check your credit report.
Make sure your information is accurate before applying for new credit.
You will need a new credit history to repair the damage done from your prior history, but slow and steady is the best strategy.
Start with one line of credit, keeping your balance below 40 percent of the available limit.
Plan your purchases and be sure the payment fits within your monthly budget.
Remember that now is the time to improve your financial habits for a secure future.
Although some people tend to shy away from the process, the truth is that bankruptcy is a great financial tool for getting back on track.
Even better, the clean slate that a debt discharge provides is a big step on the path to financial freedom.
Your Financial Future Having your debts resolved in bankruptcy is a fairly simple matter.
In a Chapter 7 filing, much of your debt will be erased with little expense to you.
While some of your nonexempt assets may be liquidated to satisfy debt payments, most people find that this process is minimally intrusive.
Further, much of your essentials or prized items will be protected through the exemption laws.
In a Chapter 13 filing, your debts are rolled into a single monthly payment that is divided among priority creditors.
Although these payments can be spread over a period of up to five years, the process can protect all assets while debts are resolved.
Further, having repaid at least a portion of the debt reduces future credit challenges.
Once your debts have been discharged, you are in a unique position to take control over your future finances.
Have you begun saving in an emergency fund? Do you have a specific budget outlined for your monthly expenses? Are you using any tools to help you keep track of your money? Did you check your credit report? These are all important aspects of rebuilding after moving on from a poor payment history.
Keep in mind the principals learned in your debtor's education course and put them into action.
If you haven't already outlined your expenses each month, do it.
Money management requires active participation.
Know your budget limits and spend within your means.
Keep track of your account balance, while also making it a priority to save money.
If you are planning on obtaining new credit again, first check your credit report.
Make sure your information is accurate before applying for new credit.
You will need a new credit history to repair the damage done from your prior history, but slow and steady is the best strategy.
Start with one line of credit, keeping your balance below 40 percent of the available limit.
Plan your purchases and be sure the payment fits within your monthly budget.
Remember that now is the time to improve your financial habits for a secure future.
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