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Moving forward after bankruptcy

Posted by Percy A Lowe on October 10, 2013 at 7:00 AM Comments comments (0)

Once you have learned your lesson about your past irresponsible credit behavior, you need to reset your priorities regarding how you should live. Indeed, some of your financial difficulty may have been caused by plain old bad luck. That raises the question: Why were you not responsible enough to set aside money to get you through hard times? Nothing is promised to anyone and everyone should be able to cover their own back. Unlike in the past, your focus should be proper debt management, long-term savings, and responsible spending.

Bankruptcy is a serious matter. It is not the end of life as you know it. Many have lifted themselves up and started living responsibly and are once again enjoying life. Once you are on the proper path, you may be pleasantly surprised how new financial responsibilities may offer themselves to make your future quite bright.

Acceptance

A bankruptcy is a death of some sort-that is, the death of your financial stability and security. Like most deaths, one needs to go through the stages of grieving, of which acceptance is crucial. You need to acknowledge that you've made bad financial decisions and that your bankruptcy is just a mere consequence of those choices. Don't be too hard on yourself. Instead, consider this a challenge to overcome and a lesson to be learned.

Be Firm on Your Resolve Not to Repeat Past Mistakes

A couple of months after you've filed for bankruptcy, you'll find that some firms are willing to give you loans. Take this as an opportunity to rebuild your credit rating. Consider the interest rates and your capability to pay them before you take out a loan. Pay your monthly dues religiously and promptly. This helps improve your credit rating and sends out the message to your creditors that you are dead set on managing your credit conscientiously.

Commit and Dedicate Yourself to Becoming Debt-Free

Keep track of your finances. Monitor your spending and strive to keep it at a minimum. It helps to make a record of all your expenses to get things in perspective. Pay your bills on time and whenever possible, give more than what is needed to cover the minimum fees. Keep in mind that doing so will take you one step closer to your ultimate goal-that is, to be free of debt.

 


 

How do you start building your credit score

Posted by Percy A Lowe on October 9, 2013 at 7:00 AM Comments comments (0)

Consider opening new accounts where you can. Do not go in over your head and make payments on time. Another good method to start improving your score is to take out a secured credit card and opening a credit union account. Generally, you make a deposit that establishes your spending limit and then you must make payments on what you purchase.With the secured credit card. If you like to know in full detail the proper credit cards to use, how to use them to your advantage, and how to start the secured credit card off you need to visit: www.coveringyouwithwealth.com

Now opening a credit union account is great because of the relationship you can build. That is a good start to show that you are a responsible person. You are able to out your character back in tact as well.You should always make your first purchase by using the credit union after the bankruptcy is over. Unless the credit union authorize a purchase with you to help.  

Taking these steps is important. Be patient. It will take some time for you to reestablish your credit worthiness, but you can do it. Their is more to learn about recovering after backruptcy.

What is the first recovery goal?

Posted by Percy A Lowe on October 8, 2013 at 7:00 AM Comments comments (0)

Your bankruptcy can stay on your credit history for up to ten years. Do not stand still for those ten years. First, pull a copy of all three credit reports and scrutinize them for errors and omissions. Chances are you will find a number of mistakes and you should write to each of the credit agencies disputing the information and asking them to remove them from the report. If you don't know how to read your credit report get you a expert credit analysis done at: www.coveringyouwithwealth.com it comes with education as well. 

Next, you will need to start a budget and future financial goal planning as well. Know that this new start can be a great start if you approach it right. The road you are on now is about education so, that you will become more aware of the little things you can do to better yourself.

Once you have some new secured credit cards be sure that you always pay on time every month. If you miss a payment or pay late, you are putting yourself one step further away from having good credit again. Also, make sure you talk about the wise use of secured credit cards. They can be a powerful tool which gives you all the control to improve your credit. This education is also offered at: www.coveringyouwithwealth.com. Just fill out the Inquiry under the tab on your left. 

What does Bankruptcy mean?

Posted by Percy A Lowe on October 7, 2013 at 7:00 AM Comments comments (0)

Two major forms of bankruptcy relief exist: Chapter 7 and Chapter 13. Chapter 7 calls for the complete liquidation of all personal assets (selling absolutely everything) to satisfy the interests of creditors. You may end up owning absolutely nothing, but you will not have any bills lingering from the past. Chapter 13 involves a court-supervised repayment plan that can last up to five years to satisfy the interests of the creditors. Usually the paycheck of the defaulter is garnered for a certain amount each month. Some assets, such as a home or a vehicle, may be retained by the defaulter. Though future lenders may look more kindly on a Chapter 13 bankruptcy, they are basically equal and the road to recovery is about the same.

Bankruptcy Recovery Part 1

Posted by Percy A Lowe on October 2, 2013 at 8:00 AM Comments comments (0)

It should mean a lot. Bankruptcy is one of the nastiest financial things that can happen to an individual, embarrassment not least among the drawbacks. But, consider that it can lead to denial of credit, housing, employment, along with other repercussions. Personal relationships may suffer serious damage. The trauma leading up to the bankruptcy and the process itself has led to many a divorce or lost friendship. And it is not cheap: Loss of assets, legal fees, other direct or indirect costs. You will be paying inflated interest fees and enduring uncomfortable terms for any future credit - if you can get credit - for a long time to come.

Going through a personal bankruptcy can be quite distressing for most individuals. After having gone through the motions of filing for a bankruptcy, one is left to deal with a multitude of psychological demons fueled by the uncertainties of the future. Recovering from the trauma that a bankruptcy brings may seem such a daunting task, but don't lose heart because recovering from a bankruptcy can be as easy as ABC.

The Main reason for this is because bankruptcy usually stays on your file for up to ten years. This means that it is harder to gain credit in the future and opening bank accounts and getting a mortgage can seem to be almost impossible during that time. However, there are ways in which you can successfully recover from bankruptcy. You can even do it in half the time.

The road to bankruptcy recovery will probably be long and sometimes frustrating, but you can get through it. Be aware that you will get denied for things and just do anything that you can to ensure that you aren't making any of the same financial mistakes that you made before.

 





Why people file bankruptcy part 3

Posted by Percy A Lowe on March 16, 2013 at 7:00 AM Comments comments (0)

Follow these steps to recover from Bankruptcy. Also, you can contact Lowes Financial for help with learning to raise your credit score while you are going through Banlruptcy.

 

The following tips will help you reestablish your credit after a bankruptcy:

• Once your bankruptcy has been discharged, review your credit reports and make sure that the

accounts you included in your bankruptcy are reporting "included in bankruptcy." Make sure that

any judgments, collections and charge offs are not still showing in collection status. This is

important because you do not want future lenders to think you still have outstanding collections, and it is distorting the amount of debt you actually owe.

• Establishing revolving credit accounts is necessary to building your credit. Six to twelve months

after your bankruptcy is discharged, apply for a secured credit card. Before you sign on the dotted

line, make sure the credit card issuer reports the payments to the credit bureau as a regular credit

card, not secured. A good place to start is www.bankrate.com or www.cardratings.com for credit

card comparisons and rate information. You will need to prepay the available balance on the card,

and there will be application and processing fees, but if you use it sparingly and make your

payments on time, you can ask for an increase in your credit limit every six months, which will help your credit score.

• Make a budget and stick to it. Bankruptcy allows you to get a fresh start so make sure you take

advantage of it. Watch the careless or non-essential spending that may have caused you the prior credit problems.

• If you were lucky enough to keep your house, make sure every mortgage payment is made on time.

This goes for utilities and other payments as well.

• Establish and make regular deposits into a savings and checking account. Make this a major priority.

Checking and savings accounts are both important to have when you're filling out credit applications after a bankruptcy because it proves to potential lenders that you have an established

relationship with a bank. Remember to start your new checking account with as much as you can

afford because with the current cost of overdraft fees, you don't have much room for error. In addition, banks track when you overdraw your account, which can hurt your chances of being approved for other accounts or loans.

• Put off any major purchases for two years if possible. Although you may still find someone to give

you an auto loan with extremely high interest, you are better off waiting until you have raised your credit score.

 


Why people file bankruptcy part 3

Posted by Percy A Lowe on March 15, 2013 at 7:00 AM Comments comments (0)

Recovering from bankruptcy has become much easier in recent years. Many lenders

rationalize that you are actually a better credit risk after filing bankruptcy because

you have very little debt and cannot legally file for bankruptcy for six years, as

opposed to someone drowning in credit card debt, a heavy mortgage and a car

payment.

 

Why people file bankruptcy part 2 Downside

Posted by Percy A Lowe on March 14, 2013 at 7:00 AM Comments comments (0)

Bankruptcy can have strong economic and emotional disadvantages, and devastate

your credit rating as well. Many people would rather struggle under a mountain of

debt than live with the stigma of bankruptcy. Why? After your bankruptcy is

discharged, you may need to explain your financial situation and

convince those you would like to do business with or obtain credit from that you

made every effort to meet your financial obligations before turning to bankruptcy.

Whether you are renting or buying a home, buying or leasing a car, or seeking

financing for a business, your bankruptcy will negatively impact you for several

years. And while you will be able to get credit cards after bankruptcy, you will pay

higher interest rates for several years.

 

Why people file bankruptcy part 1

Posted by Percy A Lowe on March 13, 2013 at 7:00 AM Comments comments (0)

Each year, over one million people file for bankruptcy. Most bankruptcies are filed as

a result of not having adequate savings or insurance to cover a job loss, medical

expenses from a catastrophic illness or an accident, divorce, or the loss of a small

business. Bankruptcy can help people get back on their feet by making it possible to

stop wage garnishments and harassing calls from creditors, it may prevent you from

losing your car or home, and it may relieve you of credit card debt so that you can

get control over your finances. Many marriage and health issues also improve

as a result of a bankruptcy.