What you should know about Bankruptcy

| February 7, 2012 | 0 Comments
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In discussing the do’s and don’t of bankruptcy, filing for bankruptcy is a decision that has been rated top among the hardest financial decisions you can actually take in your lifetime, especially when you find yourself in a very tight financial situation. Depending mainly on how it is handled, it could turn out to be the beginning of your highest financial nightmare or on the positive side, a fresh and rewarding financial start for you. In order to ensure that you stay on the positive end of filing for bankruptcy and begin a promising fresh start, it becomes necessary that you take the following do’s and don’ts of bankruptcy into consideration.

These rules include but not limited to the following:

The Do’s are:

  • Do ensure that you get your credit reports from the three major credit bureaus and be certain that all the accounts shown in your bankruptcy are marked as discharged.
  • Do arrange a debt management strategy that would go a long way to ensure that all your undischarged debts are quickly paid off in order to quicken your steps towards regaining your financial freedom again.
  • Do get yourself a secured credit card but then, ensure that the company that issued you the card promptly reports every payment you make, extends grace period to you on payments and finally, does not report the card you are using as a secured card.
  • Do make haste to contact a credit counselor should you notice that you are getting into debt again. Also, make sure that if you have new credit cards that are leading you into debt that you cut them off.
  • Do wait for not less than two years before you send in any application for a car loan or even a mortgage in order to secure the loan at the current going interest rate.

The Don’ts are:

  • Don’t ever jump at every credit repair offer that is sent your way. You might be better off seeking genuine ways to get yourself out of debt on your own.
  • Don’t allow yourself to be coerced by creditors into paying interest rates that are above the normal range just because you filed for bankruptcy.
  • Don’t get yourself into unnecessary debts while you are trying to rebuild your credit report. For example, you can forego the buying of a major appliance if it is going to get you into debt.

 

 

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Category: Blog, Debt, Remove Bankruptcies

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