How can someone recover financially from bankruptcy?

Answer 1

It would depend where you live... In Australia you will have a Credit Listing showing you are bankrupt for 7 years and 1 day. Even if the bankruptcy is discharged early as is in most cases the listing will still be visible to all creditors. The only way is to wait it out and start again once your name is cleared completely.

Answer 2

Bankruptcy planning isn't always the first thing a debtor thinks of-getting rid of debt and starting off anew is often more urgent. But few people realize the importance not just of planning, but planning smartly. Good planning can mean a successful Bankruptcy filing and a more secure financial future. Bad planning, on the other hand, can lead to anything from simple processing delays to fraud accusations that can land you in jail. If you're not sure how to start planning your bankruptcy, read on for a simple guide.

Explore Your Options.

First, is bankruptcy really your only way out? Surprisingly, for many people, it's not. Go over your debts and income, preferably with an accountant or bankruptcy lawyer, and see if there are other solutions available. Bankruptcy can have far-reaching consequences and should only be taken as a last resort. Some of the most common bankruptcy alternatives are debt settlement, debt consolidation, and simple self-reorganization of your finances.

Know What's At Risk.

How much do you stand to lose in a bankruptcy? If you're filing under Chapter 7, you may lose some of your assets if they're not listed as exempt under bankruptcy rules. Chapter 13 bankruptcy won't have the same effects, but may have other drawbacks. Take a look at your current assets and properties, and decide whether you can afford to give them up to clear

up your debt. You can also consider selling them off yourself and paying your creditors outside of bankruptcy.

Consult A Lawyer.

You will need a bankruptcy lawyer to help you along, but nothing's stopping you from consulting one even before deciding to file. A lawyer can better explain where you stand, what your options are, and what the consequences will be. They can also help you decide whether or not to file

bankruptcy in the first place. Most bankruptcy lawyers offer a free initial consultation, so just look around for recommendations and set a few appointments.

Plan Your Recovery

Bankruptcy planning doesn't end at your discharge. As previously mentioned, bankruptcy affects you longer than you may think and it's important to know the implications. For example, how do you plan on rebuilding and maintaining your credit afterwards? If you're planning to get a home mortgage afterwards, how long will you have to wait? These are all things you can discuss with your bankruptcy lawyer and plan for before taking that first step.

Answer 3

Sure you can. You won't be able to get credit from the same companies but you can get credit at other places. The easiest way to re-establish credit is to do this ... Open a savings account at a bank. When you have at least $500 in it, talk to the loan department. Tell them you need $500 but don't want to touch your savings. Ask for six months to pay it back. They will give you the loan and hold your savings as collateral. Make each payment on time. After you have made three payments, you can apply for credit at other places. When the other places get your credit report they will see that you have bank credit. They won't know it's a collateral loan. This will make you look good. After bankruptcy, you might get offers for a "secured" credit card. That's where you give them $200 (or more) and get a Visa card for that amount of credit. This isn't a good way to establish credit, since most other companies know the names of the Secured Visa companies. If you decide not to do the savings account, you should wait three to six months before you apply for new credit. Also, be sure not to apply at too many places. It looks bad if your credit report shows a lot of Inquires.

Answer 4

Basically, and believe it or not, bankruptcy is not the end of the world

for credit.

I remember before I knew about Credit that I must have bad credit

because I was late on a few utility bills, that shows how dumb I was, but

later I learned that the Credit Reporting Agencies keep us in the dark

most of the time, because consumer spending and interest rates go up.

Kind of a dark side to it all, but the good side is that you can repair your

bad credit if you have bankruptcy or foreclosures or collections too!!

But beware of scams!!

Employ a good credit repair company if you can, or work with the BIG 3

to get your credit up!

Wayne

ans==

If you worked for experian , like i did, you'd really be embarrassed with your response I wish it worked that way. Now my question is "how do the credit reporting agencies get paid? " Hmmm... figure that out and then we can talk..

Follow the money my friend, and all will come into the light

Answer 5

If you are in a Chpt 13 you can pay it off. You have to contact your Court Trustee and they can tell you how much it will costs. Then you will receive a full discharge from the BK court.

To make sure you can survive from bankruptcy, you should admit your mistake first and hold your head up high. The most important things you should do when you want to survive bankruptcy is to maintain a positive attitude. You should understand that getting down and feeling sorry for yourself is not going to help accomplish anything.

Answer 6

There are ways we can escape from bankruptcy; Selling some of your assets. Sell whatever you can spare and use the money to pay off your debts.Ask creditors to help you avoid bankruptcy. Let your creditors know you are having financial difficulty and want to avoid bankruptcy..

Answer 7

It is important to be aware that you can recover financially from personal bankruptcy. You should examine what caused the bankruptcy and ensure you do not fall into the same traps. By taking out small amounts of credit on a credit card and ensuring the bills are paid in full every month a good credit history can gradually be built up.

Answer 8

To rebuild credit after bankruptcy, you should make sure you that you stay within budget by only buying what you need to stay alive, thus saving as much money as possible. Also, make sure that bills are payed in time, even if this causes negative balance on your bank account. This shows that you are capable of paying your bills, wich will help with getting credit in the future.