How to Get Out Of A Financial Black Hole | Tustin - Santa Ana - Irvine

Keeping track of your finances can be a messy experience, especially if you are not organized. However, it may be the key to obtaining a high credit score. You will need a good credit score when it is time to do things like purchase a home, take out loans, and apply for credit cards. This article provides some helpful personal finance tips.

Bankruptcy

If you are suffering financially and feel that you will never be able to dig your way out of debt, you should consider personal bankruptcy. Hiring the right Bankruptcy Lawyer is your legal right and is a great way to eliminate the stress and anxiety of overwhelming debt. This is why bankruptcy is often referred to as a ?fresh start.?

When going through bankruptcy, don?t let creditors harass you. When you file for bankruptcy, an ?automatic stay? goes into effect. This means that creditors can take no action on outstanding debts, including calling you and filing lawsuits. Part of the bankruptcy process is a meeting of creditors, where creditors will have their chance to get as much money from you as your assets allow. But don?t worry, in many cases, they are unable to get anything because of other bankruptcy protections in place that let you keep some or all of your property. This is true in a Chapter 7 or Chapter 13.

If you are going through Chapter 7 bankruptcy, re-affirm key debts so that you can keep property associated with secured debts. The default assumption going into a Chapter 7 proceeding is that all secured property, including houses and cars, will be repossessed. If you have enough money, you can keep paying on these debts to avoid this.

An important tip to consider when working to repair your credit is that if you are going to be filing for bankruptcy as a certainty, to do it as soon as possible. This is important because you need to start rebuilding your credit as quickly as you can. Do not put yourself further behind than you need to be.

If you make too much money to qualify for Chapter 7 bankruptcy or want to retain your assets, file for Chapter 13 bankruptcy instead. This type of bankruptcy allows you to draw up a payment plan in which you pay the trustee a specified amount each month, which is then disbursed to your creditors. If you make timely payments over the life of the 3-5 year plan, the rest of your debt is wiped out.

Now that you have a better idea of how to properly manage your finances, you are well on your way to economic prosperity. Those who manage their money well are proven to be more successful, and financial stability will help put your stressful life at ease for the long run.

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