Managing your finances is certainly hard work, and for many of us, there comes a time when we need expert guidance. To reduce debt, you may consider credit counseling or filing for bankruptcy.
How do you know which route offers the best path for your financial situation?
Let’s review the advantages and disadvantages of each option as well as how to determine the right choice for you.
What is Credit Counseling?
Credit counselors work with you to improve your financial knowledge and money management. A credit counselor will review and analyze your finances to create a plan to reduce debt. You’ll be asked to disclose information about your income, expenses, and debt.
Rebuilding your credit after bankruptcy is possible. Though it will take you time to raise your credit score, you can create a brighter financial future for yourself. This is one situation where being proactive truly pays off.
Here are some smart ways to rebuild your credit and improve your financial knowledge.
Start Small and Be Deliberate with Your Budget
After filing for bankruptcy, you’ll probably be eager to raise your score, and that’s certainly a good thing! However, be careful to avoid getting in over your head. Instead of taking on new loans in an attempt to prove your “worthiness” as a borrower, set yourself up for success with careful planning.
Filing for bankruptcy is never a simple decision you take lightly. If you’ve determined bankruptcy is the right choice for you, your next step is to gather all the necessary documentation and find out if you’re eligible for chapter 7 or chapter 13 bankruptcy.
Whether your bankruptcy involves liquidating your assets or creating a repayment plan, you’ll need to gather the same documentation. An attorney can help you with filing paperwork and determine what course is best for you. To make the most of your time, make sure you bring all necessary documentation with you.
Filing for bankruptcy after divorce proceedings is not uncommon. The stress and financial burdens that accompany divorce may lead people to believe bankruptcy is their only option.
When you learn your ex-spouse has filed for bankruptcy, the best thing to do is educate yourself about the process so you can take steps to protect yourself financially. Divorce proceedings should address who’s responsible for the mortgage or other expenses if one ex-spouse files for bankruptcy.
The problem is divorce proceedings often neglect issues related to bankruptcy. If you’re in this situation, you’ll have to respond proactively to ensure your financial future is safe.
Many questions arise when you’re considering filing for bankruptcy. However, when you meet with your potential bankruptcy attorney, you may find it hard to remember them all or carve the list down to the most important ones.
To help you find the most experienced and effective bankruptcy attorney, we’ve created a list of 5 must-ask questions to use during your consultation.
There are times when filing for bankruptcy offers the most advantageous results and is the right course of action. While it’s never an easy decision, filing for bankruptcy can help you find firmer financial ground and safeguard your future. In this article, we’ll take a look at some of the biggest benefits of filing for bankruptcy.
Freedom from Creditor Contact and Harassment
One of the greatest advantages to filing for bankruptcy is what’s called the automatic stay. The automatic stay is an injunction which prevents creditors from collecting debts from, and suing individuals, who have declared bankruptcy. It also extends to contact in general, which means once the automatic stay goes into place, creditors will not be able to legally call you or send you letters. As soon as the bankruptcy petition is filed, the stay goes into effect, subject to some exceptions for, among other reasons, multiple bankruptcy filings.
If you’re dealing with harassment from creditors, this is one huge advantage to filing for bankruptcy. With the automatic stay in place, you’ll have the peace of mind you need to think through your financial situation carefully and get back on track.