Stay Positive in Bankruptcy
When your debt begins to add up, it may seem like there’s no end in sight. It’s easy to become discouraged in these cases and can be troubling to see how anything will ever improve. Once you get to the point of choosing bankruptcy, it may seem like a failure; it’s easy to focus on the things that you may lose in the process.
This is when it’s time to change your perspective and focus on the positive benefits of filing bankruptcy. Chances are, you’ll look back on this time as a challenging one. That being said, you will also know that you made a decision that improved your financial health tremendously.
People fear bankruptcy because they’ve heard myths of people losing everything and ending up destitute after filing. This is simply not true. Consult a bankruptcy attorney, they will take advantage of the many available exemptions to protect your assets. One common consequence of filing is a lowered credit score, but a lawyer will show you that there are concrete steps you can take to rebuild your credit.
Once Your File
As soon as you file, the automatic stay begins and you will no longer be contacted by your creditors. If you were headed toward collections or a lawsuit, these actions will stop. This will allow you time to catch your breath and focus on getting your bankruptcy resolved.
Once your bankruptcy is settled, you’ll have the chance to once again evaluate your budget and make a plan that you can stick to. Your attorney will encourage you to “live within your means,” and to do everything you can to build up an emergency savings fund. This way you will be able to avoid overwhelming debt in the future. As you strategically rebuild your credit, your score will improve, and soon you’ll qualify for good rates on auto loans or a new mortgage.
As you strategically rebuild your credit, your score will improve, and soon you’ll qualify for good rates on auto loans or a new mortgage. Filing for bankruptcy is also an opportunity to re-define needs and wants as you make plans for purchases and daily spending. Think of this time as a second chance with your finances, and remember that you can share all the lessons you’ve learned to help someone else avoid the financial troubles you’ve dealt with.
Think of this time as a second chance with your finances. Remember to share all the lessons you’ve learned to help someone else avoid the financial troubles you’ve dealt with.
If you’re filing a Chapter 7, most of your debt will be discharged in a matter of months. The 3-5 year payment plan o Chapter 13 will be over sooner than you think. Once these debts are behind you, you can move on in financial freedom and set some more aggressive savings and retirement goals.
Contact a Bankruptcy Attorney
I want to ensure that bankruptcy is truly what you need to make this new start, so before deciding to file, give me a call so that we can discuss your situation.