Severe financial strain can feel like a sickness, waking you up in the middle of the night and hampering your every move. Credit card companies slap double-digit compound interest onto the immense bills you already can’t pay—never mind late fees. Debt collectors pave a direct route to your wallet through wage garnishment. Add to that the threat of repossessions, foreclosure or eviction, and it’s no wonder you feel ill.
Filing for Chapter 7 or Chapter 13 bankruptcy can provide a fresh start. It has worked for millions* of Americans like you who have fallen too far behind. Though bankruptcy will show on your credit report for some time, so does crippling debt. Don’t let that prevent you from moving on with your life and rebuilding your financial profile responsibly.
*In 2015 alone, 596,867 people filed Chapter 7 and 306,729 filed Chapter 13.
Chapter 7 Specifics
If you want nothing more than to erase your bills and you qualify, Chapter 7 bankruptcy can wipe them out in about ninety days. Creditors will no longer be able to breathe down your neck.
After this type of filing, it takes ten years for the bankruptcy to be removed from your credit report. However, that does not necessarily mean you are a complete financial pariah afterward.
Amazingly enough, once you file for Chapter 7, you may receive some credit card offers. These companies now view you as being debt-free, which is more appealing to them than someone with active debt. You will still have to build your credit score back up, but beware—these cards usually have high rates and penalties.
Chapter 13 Specifics
If you qualify for this type of bankruptcy, which both allows you to keep some major assets and slows down payments, your record will be “clear” in seven years.
Since Chapter 13 does not erase all your debt and is adjusted to your bills and income, creditors may reckon that you don’t have much left over for other costs. Getting loans or credit cards may be difficult in the beginning. Making your Chapter 13 plan payments religiously will help you become more appealing to lenders over time as your credit score slowly moves up.
If you would like to know more about chapter 13 debt relief, click here (http://www.zerodownbankruptcy.com/bankruptcy-lawyer-st-petersburg-florida/Chapter-13/).
Control Spending and Borrowing
Counterintuitively, the way to seem like a solid financial citizen is to slowly build debt! Some money managers suggest you get just one credit card with a low credit limit (to help avoid the temptation of maxing out your limit) and the lowest interest rate you can. Once you have a card, ease into spending while paying off the balance each month. Others discourage this, saying it is safer to get a secured or prepaid card.
Opening a new bank account or securing a loan with a co-signer can also make you appear more stable to lenders.
Watch Your Credit Report
Sign up with one of the big three credit bureaus: Experian, TransUnion, or Equifax. Doing so will allow you to monitor your FICO score for mistakes or missed payments. How much your credit score will drop after bankruptcy will depend on your starting number; many estimates cite roughly 200 points.
Smooth Debt Recovery
Filing bankruptcy does not mean the end to your fiscal good name forever. Get yourself back into responsible money management, and feel the freedom of having your finances under control.
Navigating bankruptcy recovery is what we do, and we are here to help. Call Debt Relief Legal Group to ensure you’re on the fastest path back to financial health. To get started, call us at 1-800-DEBT-RELIEF (1-800-332-8735).
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