When it comes to finding relief from overwhelming debt, we are dedicated to helping clients find the best way to find relief. Bankruptcy is one means of debt relief that few people want to think about; however, in some situations it could be the most efficient means of obtaining a fresh financial start. The U.S. Bankruptcy Code offers consumers two ways to find debt relief through bankruptcy: liquidation bankruptcy and reorganization bankruptcy.
Chapter 7 of the Bankruptcy Code is known as liquidation bankruptcy because anyone who qualifies must liquidate any nonexempt assets - sometimes their home or car - to repay as much of their debt as possible before the rest is discharged. Consumers can only qualify for Chapter 7 if they pass the means test, proving that their income is insufficient to afford any form of repayment. Chapter 13 of the Bankruptcy Code allows a consumer to negotiate a repayment plan with his or her creditors. Over the next three to five years, the consumer continues to make payments on the debt, after which time the remainder is discharged.
Filing for bankruptcy does not mean that you will necessarily be denied for credit and loans. There is no blanket prohibition in the Bankruptcy Code against making a loan to a person that has received a bankruptcy discharge. It is generally at the discretion of the bank underwriters as to whether the applicant poses an acceptable level of risk.
Rebuilding positive credit lines is essential to KEY in improving a credit score after bankruptcy. It's not unusual for our client's to receive credit card solicitations within 1 to 2 years after bankruptcy. If you work on rebuilding your credit with new credit cards and can successfully build new positive payment history, it will increase the likelihood of being approved for an automobile loan, car lease, or a mortgage post-bankruptcy.
One way of building credit is to open a "secured credit card" with a bank. So long as the creditor reports the payment information to the credit bureaus, the positive payments can help the scores with the credit bureaus. Be sure to review the terms and fees and fees of a secured credit card to ensure they are fair.
Even if your credit is not perfect, sufficiently rebuilding credit can help get approved for a loan, although the interest rate may be higher as compared to a person with a strong credit score. It still might be better then being denied for financing when you really need it.
Does the concept of filing for bankruptcy frighten you? While the word BANKRUPTCY itself gives a rather negative ring to our ears. There's can be quite a few benefits to declaring bankruptcy in a timely fashion if your finances have become unmanageable.
There are many potential ramifications to declaring bankruptcy.
In many cases, it can affect the filers credit rating, which can be difficult to reestablish. This is one of the reasons why bankruptcy is not the right choice for every single person, despite the benefits that come with it.
Due to the fact that there are both pros and cons to filing for bankruptcy, hiring a DEBT RELIEF PRO to help with your case is a safe way to ensure you do not lose all your property and possessions. At the Law Office of Simon Goldberg, PLLC we are experienced in representing bankruptcy and debt relief cases of every nature, and our main goal is to help you pay back your debt or get it forgiven with ease and respect. Trust our personal to guide you with professionalism and respect. With satellite offices located around New York City, including Brooklyn, Manhattan, and Long Island, we are conveniently situated to all NYC residents.
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