You may be drowning in debt. You may be receiving a lot of harassing debt collector calls. You may not able to see a good way out. Let us show you how filing for bankruptcy can help you. Bankruptcy gives you a nice clean slate. Filing bankruptcy isn’t an indication of failure. It’s a way to get a fresh start and save your future. You aren’t permanently marked by this choice. It can be a very smart choice. Life after bankruptcy is good.
A Look at Life After Bankruptcy
No one comes out of bankruptcy unchanged at least a little. Chapter 13 bankruptcy has you pay off your debts, which means for several years you’re going to have a court made budget to live on. This sounds intimidating, but it’s a good thing. It typically lasts up to five years. You will learn to live without frivolous purchases. It might also mean that you start to reconsider how you grocery shop and what kind of living situation best suits you now.
Chapter 13 doesn’t allow you to fall back on a credit line without approval from a court. It really keeps you humble to what you spend your money on. You come out of this with a better understanding of money management.
Do discuss with our Clearwater bankruptcy attorneys, however, that for ten years from the date in which you file for bankruptcy, it will stick around with you. Chapter 7 looks a little different. You can leave behind a lot of your debt. In fact it’ll likely be most of it. Your credit report will reflect the bankruptcy for a decade after you file. Life after bankruptcy means that your spending has to be cash and not credit. You cannot surmount any debt.
Boosting Credit Scores
You may be wondering how in the world you are expected to build credit without using a credit card. It puts you right in that spot between the rock and the hard place, we know. There are two timelines to start to rebuild your credit. For Chapter 7, it’s going to be immediate. For Chapter 13 you’re going to have to wait until reorganization to build your credit score.
Rebuilding credit after bankruptcy is not a straight path. It’s complicated. There are many factors our Clearwater bankruptcy attorneys can help you understand. You may have a decent income which means this process could be better for you. There are things that also make it easier like you still having your home and paying mortgage payments which helps your credit score. Things to consider there is that you will have to have reaffirmed that mortgage loan during an active bankruptcy case.
If you did not do that, it means your mortgage lender won’t be reporting that you’ve been keeping up with payments to credit bureaus. If you’re in an apartment, unfortunately being good about those payments isn’t going to do anything to your credit score because it’s not a loan you’re repaying. That doesn’t suggest you should be delinquent on those payments, if you’d like to keep living there.
When you look at Chapter 7 vs Chapter 13, you can consider that it can be easier to rebuild credit if you file Chapter 7. Chapter 13 makes it a bit harder for you to rebuild your credit after filing. It doesn’t necessarily mean that it is not the right option for you. It’s just something to think about.
As skilled Clearwater bankruptcy attorneys, we certainly know that your attitude about this will make all the difference. You very well might have a harder time getting back into the swing of things, if you don’t have a good mindset going forward. It’s one thing to have financial ability. That’s all good and well. It’s about how you persevere that defines you.
You need to be able to see the bright side to the future. You need to look ahead and work toward a future where you’re not deep in debt and where you do have savings to fall back onto. These are things you will be proud of yourself for doing, but you need to work to get there. It takes a certain mental fortitude after bankruptcy to do this.
Finances Going Forward
We won’t lie. It’s tough to go on after bankruptcy, but it’s not as tough as staying in that same hopeless place you may be in right now. There’s a future after bankruptcy and it can be a great one. You don’t want to stay in this dark place you’re in right now and you don’t have to. You deserve more than that. It feels good to file for bankruptcy. It’s a weight lifted. It’s a hope for a good future.
Our Clearwater bankruptcy attorneys are happy when we see clients in this stage. We do warn them that it’s a rollercoaster. It’s not a straight shot to better days. You need to be prepared for it to be tough. If you can do that, you’ll be in good shape. You may look back at the ten years between filing and the bankruptcy not appearing in your credit report and be very satisfied with the choices you made. Let us help you get there.
Call Our Clearwater Bankruptcy Attorneys Today
If you want to know more about bankruptcy, please get in touch with our Clearwater bankruptcy attorneys today. You deserve to have someone skilled and caring walk you through this. Contact our office today to set up a consultation.
Let the experienced bankruptcy creditor protection attorneys at Perenich Law Injury Attorneys help. As Clearwater bankruptcy attorneys with offices in Clearwater, Tampa, St. Petersburg, Tarpon Springs, and New Port Richey, we understand that the unexpected happens in life.
Our personal bankruptcy attorneys have more than 20 years of experience and have represented thousands of consumers and businesses in bankruptcy cases.