Bankruptcy: Life After it...what's it look like?

Aug. 15, 2010 - PRLog -- The whole idea behind filing bankruptcy is to give you a fresh start. Just imagine life without credit card debt, high medical bills, and various other financial obligations. That is what life will be like after you have been discharged from your bankruptcy. The “fresh start” is the goal of every bankruptcy. So is there a catch?

I am sure you have heard many rumors involving bankruptcy. The most common rumor I have heard is that you will never be able to get a credit card or another loan if you file for bankruptcy. This is simply not true. While a bankruptcy is a factor lending companies will look at when deciding to lend you money it is not the only factor and it will surely not preclude you from receiving credit. Think about this idea for a minute. If you were going to lend a friend money, would you rather lend money to a friend with high amounts of debts or would you rather lend money to a friend that has had financial difficulties in the past, but has little to no debts. If it were me, I would choose the latter. This is similar to the thought process of many lending agencies. While it seems like filing for bankruptcy makes you a credit risk, not filing can often times be an even bigger risk depending on certain circumstances.

So what should you do to avoid having to file bankruptcy more than once? First you should become comfortable with checking your credit history. After a bankruptcy discharge, your prior debts should show up as zero. If they do not you should report the discrepancy to the credit agencies. Equifax, Transunion, and Experian are the three big credit agencies. A simple phone call to any of these agencies will let you know where your finances stand.

You should also keep careful track of everything you spend. Get in the habit of recording even the smallest transaction. You will be surprised how much money you spend on vending machines and how much you spend on your meals each day.

I like to talk to my kids early and often about finances. Discussing the importance of hard work, earning an allowance and saving money are all important lessons. Talking to your children will have a huge impact on their awareness of their own finances in the future.

Limiting the amount of credit cards you have as well as an automatic withdrawal from a paycheck each week is invaluable. Credit cards enjoy when our balances get high. The higher the balances the more money they can charge us interest. These high interest rate credit cards, while convenient can often lead to trouble in the future. Automatically withdrawing money into a savings account or a retirement account is so easy to set-up and do. You never see the money, so you never get a chance to spend it. Before you know it, you will have hundreds of dollars in a savings account that you have not touched in months.

While some of these ideas are simple and are easier said than done, they will have a huge impact on your life.

For more information visit http://www.getbankrupcyhelp.com or call us directly. Here is another bankruptcy article http://www.prlog.org/10861124-bankruptcy-should-you-file-... and here is another http://www.prlog.org/10791596-orange-county-dispensaries-... for your reading enjoyment.

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