I Filed Bankruptcy. Now What?
I Filed Bankruptcy. Now What?
This one is personal to me, as I filed chapter 7 and it was the best thing that I ever did because even though it got the collectors off of my back it opened up my eyes to have a better understanding of how important my credit was.
Let’s talk about this dirty word……………….BANKRUPTCY
In my opinion, bankruptcy is the inability to pay back what you borrowed and you do not have the means to do so. However, here is the legal version, bankruptcy is a generalized term for a federal court procedure that helps consumers and businesses get rid of their debts and repay their creditors.
Bankruptcy is a nasty word to most people and the reason being is because it can be embarrassing telling others that you can’t pay your bills. Perhaps one of the most profound impacts of bankruptcy is on relationships as it results in the end of relationships for many people and lenders, but please note lenders come a dime a dozen and more can offer you another opportunity. However, bankruptcy does not have to be the bleak thing it is made to be as there are ways to turn this negative into a positive.
There are two versions of bankruptcy; Chapter 7 and 13
Chapter 7 allows you to wipe away most or all of your debt less student loans, restitutions, and child support. I am pretty sure that there are others but you can look those up in your study time and 13 allows you to make payments to your creditors. Me personally, if you could not pay them before, why make payments with them now ?
I have a group on Facebook by the name of BLACK GIRLZ HAVE GOOD CREDIT 2 and you should send us an invite as there are several phenomenal women in the financial industry that are doing awesome in the credit world and would definitely not condone bankruptcy. But here is my philosophy, he has given us freewill to make our own decisions and if you feel bankruptcy is the way, DO IT!!!!! As anything, dealing with credit you have to rebuild and or build so why not just get rid of it at one time and move on.
The great thing about filing bankruptcy is that you don’t have to have an attorney and you can do it on your own, but I do advise that you thoroughly do your research. Bankruptcy can stay on your credit over 7 years but hey, as you start to rebuild and establish yourself many lenders will still lend if you have proven yourself. Like me when I got out, my interest rate was high however, I got refinanced with my credit union a few months later and the sky was the limit.
There is definitely life after bankruptcy and before you make a decision, I encourage you to pray about it and research and whatever decision you make I SUPPORT YOU!
