If you have been battling financial difficulties for more than just a few years, you know how stressful it can be. Sometimes bankruptcy is your only way out. Whether or not to file for bankruptcy is a tough decision to make. For many people, it can be a decision that doesn’t make them feel great. The good thing about it is that it will give you some relief, and provide you with the ability to at least see light at the end of the tunnel. Bankruptcy is bad for your credit, and does take some time to fall off your credit report, but life will get easier.
Bankruptcy can take the pressure off and make your life a little less stressful. It does unfortunately come with some side effects. Oftentimes, bankruptcy will affect parts of your life you have never considered. Although you cannot be turned down for a job specifically because of your credit, many employers will look at your credit report to get a better idea about you. If this is a high level job where you will be handling money and finances, this could be detrimental to you getting hired. Other areas to consider are your child’s education. If you have a child in a private school, the court may advise that you take him or her out before they accept your filing.
Reestablishing your credit will be your main goal after bankruptcy. Strangely enough, this can oftentimes be easier after bankruptcy. With your debts cleared, you may be able to begin establishing credit within just a few years. The best thing to do is apply for a secured credit card and begin to rebuild your credit that way. A secured card is gotten by putting money in an account with a credit card company that allows you a credit limit on your card in the same amount. You will then repay your debt every month just like you would with normal credit. This can build your credit at an accelerated rate.
Getting credit after filing for bankruptcy will be almost impossible. Trying to rent an apartment or lease a car is extremely difficult. If you manage to file and hold on to your house, paying your new mortgage payment will build your credit quickly. Renting or buying a car will have to be done with places that do not perform credit checks and ask for a lot of money down. If you are confused at all about how bankruptcy will affect your life, you should set up an appointment for a consultation. An experienced Thousand Oaks bankruptcy lawyer or Woodland Hills bankruptcy lawyer can help.
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