“Avoid bankruptcy” is the most common phrase; we come across in our everyday life. There are several disadvantages of bankruptcy. But if you are bankrupt, it is not very difficult to swim out of the situation.
It is true that, we should avoid bankruptcy, but to think that life after bankruptcy becomes a standstill is indeed very much untrue. The creditors repeatedly denying you a loan approval, and your credit score getting miserably down, might make you feel helpless. Don’t feel down .To bug out of this agony you may refer to the following ways:
Be more frugal: Spend less. If you are already frugal by nature, cut down your unnecessary expenses. List the items which are a luxury for you. Try avoiding them. This can help you to make some savings.
Increase your income: Make a market survey to check out if your salary is justified. See if you get, offers with a better pay. Take up some part time jobs.
Plan your budget: Make a proper budget and stick to it. It will help you to keep your expenses in a proper track.
Track your expenditures: Review your expenditure regularly, check out if you are spending extra from any angle. Compensate that extra expense by cutting down some other expense.
Monitor your credit report regularly: After following a tight budget and frugal life for quiet sometime, pay off your pending debts as much as you can. This will help you to develop your credit report faster.
Increase your credit score: After you have been declared a bankrupt, increasing your credit score might seem a hard task for you. But, you should know that you can easily pull up your credit score within next two years of time. Only by regular monitoring your credit report and using your finances responsibly, you can increase your credit score at large. This will help you to qualify for a mortgage loan or a car loan within a short while.
Increase your financial knowledge: Increasing your financial knowledge will certainly help you to develop a better understanding of finances and know about the ways to repair your credit. This will also help you to retain a healthy financial condition much faster.
If there is a will there is always a way. While you are declared bankrupt, you may wonder if you can ever qualify for a home loan. Don't worry, you can easily acquire a home loan even as a bankrupt, but you should be ready to buy it. Home ownership involves monthly expenses on mortgage, other expenses like, tax payment, insurance and maintenance. Check out if you are prepared for this. To get a home loan is yet an easy deal for you. So even if you are a bankrupt you can easily swim out of the situation and lead a healthy financial life.
When can you not discharge debts through Chapter 7 bankruptcy?
Chapter 7 bankruptcy gives you the option of getting out of debt within 3-4months. However, this option is not available for everybody. This article talks about the 4situations when debtors can’t qualify for Chapter 7 bankruptcy.
Should you obtain a personal loan to throw debt out of your door?
You'll be able to wipe out your credit card debts through a personal loan. However, you need to have a decent credit history to be eligible for a loan.
Does repossession eliminates your car loan debt?
If you have defaulted on car loan debt, then having your vehicle repossessed will not satisfy your debt. You may still owe money to your creditor. Moreover, repossession will lower your credit score. Therefore, it is better to find out alternative ways to pay off the car loan debt.
