Re-Inventing Yourself After Bankruptcy

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A great tool to use if you have experienced a Bankruptcy or considering one.

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  • Re-Inventing Yourself After Bankruptcy A Guide to Help You Move Forward

    2 Copywrite Robin Hardy 2008

    All rights reserved do not copy or distribute without written permission of owner. www.RobinHardy.net

    Table of Contents

    Introduction 2 Understanding Bankruptcy 3 The Bankruptcy Process 6 Chapter 13 7 Chapter 7 9 Getting Out of Debt 11 Get Ready to Re-Invent Yourself 16 Making Bankruptcy Work for You 19 Using Secured Credit Cards to Re-Build After Bankruptcy 24 Rebuilding Credit though Your Mortgage 25 Erasing Credit Damage: What Can You Do? 27 Credit Monitoring Services 30 Preventing Identity Theft 34 Pitfalls To Avoid in Re-Building Your Credit 43 Beware! Credit Repair Scams 47 Common Lies of Credit Repair Companies 51 Summary 53

  • Re-Inventing Yourself After Bankruptcy A Guide to Help You Move Forward

    3 Copywrite Robin Hardy 2008

    All rights reserved do not copy or distribute without written permission of owner. www.RobinHardy.net

    Introduction

    Bankruptcy is the last resort that you will explore today as households attempt to stay

    afloat with declining home values, lost jobs and a failing economy. Nobody ever

    wants to declare bankruptcy; however there are times that it may be the best

    solution/answer for your current situation. Bankruptcy is not something that you

    should be playing with. There are many people that will declare bankruptcy because

    they think this is an easy way out of debt. That is not true. In fact, declaring

    bankruptcy makes life quite a bit harder. Plus, it is much more difficult to file for

    bankruptcy than in earlier years.

    While many people need to file for bankruptcy today, not everyone knows that they

    can rebuild their credit afterward. Most people think that bankruptcy is a terrible

    thing that you carry around with you forever. This is not true. Unfortunately, you will

    have to carry this around for at least 7-10 years, but not forever. Also, it is important

    to understand that you are not a failure because you had to file bankruptcy and you

    can move forward from this point forward.

    Once you have declared bankruptcy, you will find that it will be a challenge to get

    credit for major purchases like houses, cars and personal loans. It may be a challenge

    however, it is not impossible. You can rebuild your good credit standing after you

    have declared bankruptcy. The success key here is learning from your past and

    starting fresh on a positive path.

    This book is a guide to rebuilding your credit and will teach you how to re-invent

    yourself after a bankruptcy. You will learn: what bankruptcy really is, why people

    have to declare bankruptcy and how to rebuild your credit once you have declared

    bankruptcy. You will even learn why bankruptcy could be a good thing for you.

    Although bankruptcy is a last resort to paying off your creditors, it doesnt have to be

    your last stop. You can build your credit back up and we are going to show you how

    to do it!

  • Re-Inventing Yourself After Bankruptcy A Guide to Help You Move Forward

    4 Copywrite Robin Hardy 2008

    All rights reserved do not copy or distribute without written permission of owner. www.RobinHardy.net

    Understanding Bankruptcy

    Today there are more bankruptcy filings than we have seen in history, some are a

    result of poor financial choices or living beyond your means, while some are a direct

    result of the current economy. The decision to file for a bankruptcy is one that you

    really need to consult a legal expert that specializes in bankruptcy to fully understand

    your options. Obviously if you can avoid the filing it is better as the end result will

    live with you in your credit history for 7-10 years. Bankruptcy will affect the way you

    are viewed by the creditors you may try to establish a credit relationship for 7 to 10

    years after its been discharged.

    Bankruptcy can seem like a very humiliating process especially when you sit in the

    room for the creditors hearing. To encourage you keep in mind you are not the

    bankruptcy you are you, you do not own the bankruptcy. Having to file for

    bankruptcy does not mean you are a bad person or a failure, remind yourself life

    happens to good people pick up your heals and move forward from here.

    Pros and cons to Bankruptcy

    The fact is that you shouldnt become bankrupt just because you're struggling with

    debts. Like we said before, this should only be used as your last resort. The reason

    for this is because you may be required to give up most of your belongings as a result

    of it. Some of these might include; salary and any investment or equity in your

    house.

  • Re-Inventing Yourself After Bankruptcy A Guide to Help You Move Forward

    5 Copywrite Robin Hardy 2008

    All rights reserved do not copy or distribute without written permission of owner. www.RobinHardy.net

    If you own any property or shares in businesses these may have to be sold to pay back

    the money you owe as well. This means that you could lose your familys house

    should you decide to go bankrupt. Even if it is jointly owned by you and a spouse or

    parent, you may be forced to sell it so your share of the proceeds can be used to

    repay debts.

    If you come into any money while the bankruptcy order is still in place, this could also

    be taken away from you. This money could come from the lottery, or an inheritance.

    Of course, you could also find yourself credit blacklisted for up to 15 years. So you

    should really think before filing for bankruptcy.

    Bankruptcy is best for someone with considerable debts, no income and no assets.

    The people it has the highest effect on are those that actually have equity in

    property, disposable income and people that have professional qualifications because

    they stand to lose the most.

    The alternatives to Filing for Bankruptcy

    You could write to your creditors and seek an informal arrangement that allows you to

    pay back your debts over a specific time that they agree on. The only disadvantage

    to doing this is that it won't be legally binding and your creditor might choose to

    ignore it later on and seek direct payment.

    If your debts are relatively small like $5000 or less and you have a regular income the

    court may agree to set up an order so that you can pay your creditors each month but

    through the court.

  • Re-Inventing Yourself After Bankruptcy A Guide to Help You Move Forward

    6 Copywrite Robin Hardy 2008

    All rights reserved do not copy or distribute without written permission of owner. www.RobinHardy.net

    If you do have severe debt problems, such as debts over $10,000, you may have to

    turn to bankruptcy to help you. You may also set up payment arrangements with your

    creditors. You can make an agreement between you and your creditors that will

    allow you to repay a percentage of the debt over a set period of time, which is

    usually around five years. If you do head this direction be sure you get everything in

    writing from the creditor to protect yourself.

    The advantage to doing this is that you will have more control over your assets, have

    fewer restrictions and you won't be categorized as bankrupt. This is excellent should

    you be running your own business. However, sometimes, filing for bankruptcy is all

    that you can do. In this case, it helps to know the exact process. That is what the

    next section will help you with.

    I would strongly recommend staying away from any debt management company as

    they charge high fees and usually do nothing to help you out. I had sought out a

    company that was going to manage my debt, at the time $8,000.00 (many years ago)

    which in my eyes was a huge debt I was unable to pay. So I hired a debt management

    company to help me payoff my debts and be debt free, for 1 year they took my money

    and their monthly fee. From all the money they collected they paid nothing to my

    creditors so I began getting summons for court and wage garnishments. I was forced

    to seek an attorney to file bankruptcy. I also pursued the debt management company

    in court for fraud, lets just say I won, they were shut down and lost all their assets, I

    was not the only one they took advantage of over the years.

    Approach companies like this with caution, if they want money to help you, run away.

    Understand also that if you go through a settlement process like a management

    company, it is still looked at as a bankruptcy by the banks. The other consideration

    they do not tell you is if you settle a $10,000.00 debt for $2,000.00 you can receive a

    1099 for the $8,000.00 as income. Do your homework!

  • Re-Inventing Yourself After Bankruptcy A Guide to Help You Move Forward

    7 Copywrite Robin Hardy 2008

    All rights reserved do not copy or distribute without written permission of owner. www.RobinHardy.net

    THE BANKRUPTCY PROCESS

    If you are thinking of filing for bankruptcy, it is absolutely necessary that you meet

    with a lawyer or office that specializes in bankruptcys so that your filing is clean and

    you understand the process clearly. You cant do this on your own and expect

    everything to work o