Life After Bankruptcy In Tennessee
While bankruptcy can seem like a difficult step, before you begin, you may wonder what life will be like after your bankruptcy is finished. Bankruptcy was designed to get debtors a “fresh start” but what is that like?
If you are struggling with debt problems, bankruptcy may help you to get the fresh start you have been seeking. I’m attorney Steven F. Bilsky and I have been practicing in bankruptcy law for more than 39 years. I have helped thousands of my clients in Tennessee find solutions to difficult debt problems.
Many people struggle with debt problems for months or years before consulting with a bankruptcy lawyer. Such individuals often live with the stress of constant collection calls, unmanageable debts and aggressive creditor collection efforts.
They worry about their credit rating, they worry about losing all of their property and they simply have a fear of the unknown. They worry that they will have great difficulty recovering and even obtaining credit.
The reality is different. You may actually receive applications for credit cards shortly after you file. Here’s why: Credit card companies buy lists of people who file every month. They know these people will need new credit cards and they also know that if they complete their bankruptcy, they may not be able to file another bankruptcy for seven years. This makes them worth the risk. Use this to your benefit. Obtain a card, but use it carefully.
After Chapter 7
A Chapter 7 bankruptcy eliminates most of your debts. You typically emerge within six months with a true financial “fresh start” and are debt-free. You will need to begin rebuilding your credit, and the best way to do that is to get a credit card with a modest credit limit and use it with great care. Using the card to purchase small items and then pay the full balance will help rebuild your credit and protect you from being taken advantage of by these companies.
After Chapter 13
A Chapter 13 bankruptcy is different, in that you likely completed five years of plan payments. For secured assets that you continued to pay during your plan, like a home mortgage or car loan, if they were not paid off, you must continue making those payments. Most of your unsecured debts should have been discharged.
Here is one advantage of a Chapter 13 bankruptcy: If you completed it successfully, you can easily adapt the “plan” after bankruptcy, using it as a basis of a budget for your household. You can move some of the cash you were paying the trustee to a savings account to create an emergency fund. No want wants to go through a bankruptcy, but you can build on this experience with your finances in a way that can protect your future.
The Lesson Of Bankruptcy
I know many of my clients need bankruptcy for help in a crisis. Job loss, illness and health issues, divorce can all blindside anyone at any time. No one wants to file for bankruptcy protection, but the process can help you recover from a crisis that threatens your financial life. No matter how you got here, I can help explain how the process will work for you and how you can put your financial crisis behind you to obtain a brighter future.
Contact Me For Help
The Law Office of Steven F. Bilsky is a debt relief agency that helps people file for bankruptcy relief under the Bankruptcy Code.