So, you feel like you need to file bankruptcy, but you are wondering how this will affect you. I have filed bankruptcy before, and let me tell you, it will have a huge affect on you. Some will be good and some not so good. Let me explain.
So, when you reach the point of having to file bankruptcy, your credit is already shot. You are behind on payments, and you are drowning. You don’t think there is any way of getting out of the mess you are in. But then, you see an advertisement for bankruptcy. Suddenly, you see a light at the end of the tunnel.
Now, some people will tell you that bankruptcy is the easy way out. It is not. There is absolutely nothing easy about filing for bankruptcy. It’s a months long process, with lots of paperwork and research work on your part. It costs more than $1,000, usually, and in most cases more. It is not the easy way out. Don’t let anyone tell you that it is. You will be researching for weeks, to get every ounce of information needed. You will need to find information regarding each bill you owe. A lot of times, it has been sold over and over, so you will need to know which creditor it has been sold to, and if you are like me, each creditor that held it at any time. Some of the information you will need to know is:
- original name of creditor
- current creditor
- phone number
- account number
- amount owed
There is a lot of work that goes into this process. Then you have court dates, and lawyer meetings. Eventually, 6 months or so down the line, your bankruptcy will be discharged, and you will no longer owe the debts. This is a fantastic feeling! But, then, you decide you want to buy a car, or a home, or some other thing that requires a loan.
This is where you find that bankruptcy sucks. Since you filed bankruptcy, you won’t be able to get a loan for anything for at least two years. This is a minimum. Yes, there are some super high interest places that might give you a loan after bankruptcy, before two years, but I don’t recommend them. The interest alone will be enough to kill you. These high interest loans might just overload you again, and you will find yourself buried in debt again.
My main suggestion is to save to purchase what you need. Try to wait the two years after bankruptcy, because by then, your credit will be better. You will get better interest rates, and therefore, better payments. My number one suggestion after bankruptcy is to avoid credit cards and high interest loans. Trust me on this. You think you can handle them, but then you get carried away and the next thing you know, you are buried again. Wait as long as possible after bankruptcy to get a loan, or avoid them altogether. Don’t go for the first loan opportunity you come across. I encourage you to hold out for the best offer, that will be the best for your situation.
"Time spent with cats is never wasted." ~ Sigmund Freud