|
#DESCRIPTION
#KEYWORDS
As a Chicago resident requesting relief under Chapter 7 and/or 13 of the United States Code, the repercussions that affect your life after bankruptcy are twofold. On one hand, those who have filed often receive offers for credit cards and auto loans soon after their debts have been officially discharged. This is because the companies know that you are restricted from filing again for several years. On the other hand, it can have detrimental effects on your credit for purposes of getting a low rate on a mortgage. Sometimes filing a petition for relief under either section is a necessary option for Chicago residents who have tried all of their other options when trying to repay their debts. Despite the ability to receive credit cards and auto loans, however, filing for protection should always be considered as a last resort only when other possibilities have been exhausted.
Hillary Clinton The Populist? (The Politico)
Before an audience of liberal bloggers last fall, Hillary Clinton defended Washington’s advocate class.
One of the biggest complaints that people have about bankruptcy for the sake of a new start is that it does not change a person's habits. Oftentimes, people get deep in debt because of bad spending habits or because of letting their credit cards and consumer debts get out of control. The actions you take after bankruptcy are vital to keeping the management of your finances under control. This is one reason that filing does not actually help people. Without behavior change, the majority of filers fall back into the same destructive spending habits that they had before their debts were discharged. Therefore, recognizing that you have a spending problem is vital before considering bankruptcy.
More important than receiving a fresh start through bankruptcy is the need to change your spending habits. This is often the leading cause for people getting deep into debt and filing bankruptcy only reinforces these bad habits. Credit cards can be advantageous if you know how to use them responsibly. Unfortunately, all too often they get out of control until it is too late to fix the problem. Without proper counseling and education, bankruptcy is just a temporary fix that many people use to get them out of financial trouble.
The final step following a bankruptcy is to deal with the negative ramifications it has on your credit. For purposes of getting a home mortgage, bankruptcy will stay on your credit record for the rest of your life. This could be bad news for the interest rate or the repayment terms of your mortgage even several years after bankruptcy. If you file bankruptcy due to one single major setback in your life, such as an illness that resulted in huge medical bills or a job loss, some mortgage companies will work with you. While it still shows up on your credit, mortgage companies that do manual underwriting can customize your home loan and they will consider your specific situation. Be sure to save any papers related to the event so you can present them to the mortgage company when it is time to buy a home.
Your life after bankruptcy can return to a sense of normalcy if you take steps to limit its negative implications. Changing your spending habits is the most important thing you can do to ensure that you do not get in the same predicament again. Examine how you spend your money and use a written monthly budget. Only spend money that you have rather than buying things on credit, too. If your bankruptcy was a result of a single life event, keep the papers associated with the event in case you ever need proof of your circumstances. The best thing is to realize your mistakes and move on with your life.
|
