Filing for bankruptcy should not be something you take lightly. Filing for bankruptcy will entail a lot of work and discipline, not to mention have an effect on your credit rating for a number of years. It may affect your financial dealings in future as you may find it more difficult to obtain credit after bankruptcy. But these factors should not dissuade you from filing for bankruptcy if you need to. If bankruptcy is a viable option for you, you should file a petition without hesitating. Millions of people have been helped by filing a bankruptcy petition. You can be one of them, too.
So the important thing is to determine if bankruptcy is a viable option for you. How do you tell?
1. Evaluate your debts
If your debts are increasing and it appears as though you would spend many years struggling to clear them, then you should seriously consider filing a bankruptcy petition. Bankruptcy is designed to wipe your slate clean and give you a fresh start financially. It is better to bite the bullet and go through the bankruptcy process and have a clean slate in a matter of months (or at most 5 years) than suffer decades of stress and heartache struggling under insurmountable financial debt.
2. Consider your credit score
Yes, bankruptcy does have an effect on your credit score, but so does not filing bankruptcy and missing monthly payments on your car loan, mortgage, credit card payments etc. So which is more damaging, being a discharged bankrupt and have your credit score repaired after bankruptcy or not being a bankrupt and having your credit rating plunge down the financial abyss?
3. Consider your sanity
Are you being hounded by creditors or debt collectors? You can put a stop to the incessant phone calls, notices of demand, lawyer’s letters, threats of lawsuits etc and reclaim your sanity by filing a bankruptcy petition. Once you file for bankruptcy, an automatic stay comes into immediate effect and your creditors are barred from contacting you or demanding for money.
4. Evaluate you financial habits
Do you consistently end up spending more than you earn? Do you suck at keeping to a budget? If so, filing bankruptcy would be beneficial to you as you would be obligated to attend credit counseling and financial management classes as a prerequisite to exiting bankruptcy. These lessons may well be the new start to your financial life that could put you on a firm footing to financial freedom in your future.
If any or all of these factors are applicable to you, then do consider filing for bankruptcy as it is a viable option for you. Call us now at (813) 200 4133 for a free consultation.
Related Blogs
Filed under Chapter 7 (Tampa) by on May 9th, 2012. Comment. 
Is it possible to rebuild a good credit standing after bankruptcy? The answer is an emphatic yes! Filing for bankruptcy does not mean you will never be granted credit or given a loan again. It all boils down to doing the right things to rebuild your credit after a bankruptcy.
Rebuilding your credit means having to re-establish your standing before the credit bureaus. To do so, you have to show yourself to be prompt and faithful in paying your dues. There is practically no way for an individual by himself to deal with credit bureaus and because of that, you need to go through an intermediary like a credit card company. Credit card companies submit regular reports on their clients to the credit bureaus.
So the first step would be to apply for a credit card. Since you have been a discharged bankrupt, some banks might impose certain restrictions and conditions in issuing you a credit card. For example, you may be granted a secured credit card i.e. one that is backed up by some collateral put up by you. Another example may be a bank issuing you a prepaid credit card which is a credit card where you are given credit only upon paying the bank. Some banks might even issue you a credit card that is only valid in certain countries and not worldwide.
Once you have been issued with your credit card, you should seek out a regular payment schedule where you can pay using your credit card. Then all you need to do would be to use your credit card to pay the regular payments each month. As long as you regularly pay each month’s payments on time with your credit card, your credit score will eventually rise as the credit company reports your payments to the credit bureaus.
Another means of increasing your credit score is to obtain a mortgage. This may be difficult due to your bankruptcy but there are some mortgage products you may qualify for. It may be one with a higher interest rate or you may need to take up an interest-only loan in order to get a mortgage. You cannot afford to be picky. Just choose a mortgage arrangement that is within your means to repay and start repaying on schedule. This will also improve your credit rating over time.
If possible, try to get a good mix of credit arrangements without biting off more than you can chew. For example, if you can secure a store account, a car loan and housing loan, it goes to show to the credit bureaus that you can manage different types of credit well. Such a credit mix will augur well for you in increasing your credit score.
Related Blogs
- Home loan interest rates gets benefit | raestate
- Mortgage Rates in Canada | raestate
- Free Personalized Hallmark Card For Mother's Day » My Money Blog
- Penfed Visa Platinum Cashback Rewards Card – 5% Cash Back on Gas …
- Chase Sapphire Preferred Card: Easy $250 Signup Bonus! » My Money Blog
- Should You Manage Your Own Mortgage Escrow? » My Money Blog
- Free FICO Score For Joining MyFico Forums » My Money Blog
- Free Experian PLUS Credit Score From American Express » My Money Blog
- Free Credit Score Report Card and Analysis » My Money Blog
- Pruco Life Insurance Company(INVESTMENT COMPANY)
- Car Loan Rates | financebis
- 2010 Housing Market Predictions. Where Will Mortgage Rates Go …
- Improving your credit score | financebis
- China scores a double A, says Beijing's credit rating agency …
- Small Business Loan Uk: an Invention at Home in | Opening A Small …
- Must-Have Free Website Template for Business Company | Template …
- The NAACP and the Race Card (with Bonus Idea for South Park …
- How Will The Fed Affect Mortgage Rates This Year?
- If Ireland cuts are such a great example for Britain, why has …
- Got Company Stock Options? Here's How They Work
Filed under Chapter 7 (Tampa) by on Jul 15th, 2010. Comment.
Is it possible to rebuild a good credit standing after bankruptcy? The answer is an emphatic yes! Filing for bankruptcy does not mean you will never be granted credit or given a loan again. It all boils down to doing the right things to rebuild your credit after a bankruptcy.
Rebuilding your credit means having to re-establish your standing before the credit bureaus. To do so, you have to show yourself to be prompt and faithful in paying your dues. There is practically no way for an individual by himself to deal with credit bureaus and because of that, you need to go through an intermediary like a credit card company. Credit card companies submit regular reports on their clients to the credit bureaus.
So the first step would be to apply for a credit card. Since you have been a discharged bankrupt, some banks might impose certain restrictions and conditions in issuing you a credit card. For example, you may be granted a secured credit card i.e. one that is backed up by some collateral put up by you. Another example may be a bank issuing you a prepaid credit card which is a credit card where you are given credit only upon paying the bank. Some banks might even issue you a credit card that is only valid in certain countries and not worldwide.
Once you have been issued with your credit card, you should seek out a regular payment schedule where you can pay using your credit card. Then all you need to do would be to use your credit card to pay the regular payments each month. As long as you regularly pay each month’s payments on time with your credit card, your credit score will eventually rise as the credit company reports your payments to the credit bureaus.
Another means of increasing your credit score is to obtain a mortgage. This may be difficult due to your bankruptcy but there are some mortgage products you may qualify for. It may be one with a higher interest rate or you may need to take up an interest-only loan in order to get a mortgage. You cannot afford to be picky. Just choose a mortgage arrangement that is within your means to repay and start repaying on schedule. This will also improve your credit rating over time.
If possible, try to get a good mix of credit arrangements without biting off more than you can chew. For example, if you can secure a store account, a car loan and housing loan, it goes to show to the credit bureaus that you can manage different types of credit well. Such a credit mix will augur well for you in increasing your credit score.
Filed under Chapter 7 (Tampa) by on Jul 1st, 2010. 1 Comment.
Is it possible to rebuild a good credit standing after bankruptcy? The answer is an emphatic yes! Filing for bankruptcy does not mean you will never be granted credit or given a loan again. It all boils down to doing the right things to rebuild your credit after a bankruptcy.
Rebuilding your credit means having to re-establish your standing before the credit bureaus. To do so, you have to show yourself to be prompt and faithful in paying your dues. There is practically no way for an individual by himself to deal with credit bureaus and because of that, you need to go through an intermediary like a credit card company. Credit card companies submit regular reports on their clients to the credit bureaus.
So the first step would be to apply for a credit card. Since you have been a discharged bankrupt, some banks might impose certain restrictions and conditions in issuing you a credit card. For example, you may be granted a secured credit card i.e. one that is backed up by some collateral put up by you. Another example may be a bank issuing you a prepaid credit card which is a credit card where you are given credit only upon paying the bank. Some banks might even issue you a credit card that is only valid in certain countries and not worldwide.
Once you have been issued with your credit card, you should seek out a regular payment schedule where you can pay using your credit card. Then all you need to do would be to use your credit card to pay the regular payments each month. As long as you regularly pay each month’s payments on time with your credit card, your credit score will eventually rise as the credit company reports your payments to the credit bureaus.
Another means of increasing your credit score is to obtain a mortgage. This may be difficult due to your bankruptcy but there are some mortgage products you may qualify for. It may be one with a higher interest rate or you may need to take up an interest-only loan in order to get a mortgage. You cannot afford to be picky. Just choose a mortgage arrangement that is within your means to repay and start repaying on schedule. This will also improve your credit rating over time.
If possible, try to get a good mix of credit arrangements without biting off more than you can chew. For example, if you can secure a store account, a car loan and housing loan, it goes to show to the credit bureaus that you can manage different types of credit well. Such a credit mix will augur well for you in increasing your credit score.
Filed under Chapter 7 (Tampa) by on Jun 3rd, 2010. Comment.
