How Bankruptcy Can Be the Start of a More Secure Financial Life

 Posted on October 27, 2014 in Bankruptcy

Let us redefine the popular yet misguided perspective of bankruptcy. First, here are the facts: Bankruptcy  may have a negative impact on a credit score and will stay on record for 10 years. Lenders will consider someone who recently went through bankruptcy as a risk and will be less likely to loan  money. According to Bankrate, it is even possible to see insurance rates rise. Due to these conceptions, many view bankruptcy as a stressful and that it is a difficult way out of debt. But, this does not have to be true.

Bankruptcy is an opportunity—even a tool—that grants debt relief while teaching some valuable financial lessons. There are a variety of reasons why one might consider bankruptcy, and the best chapter to file depends on the circumstances surrounding the debt.

What You May Learn While Going Through Bankruptcy

Different forms, or chapters, of bankruptcy offer different solutions to getting out of debt. What they all have in common, however, is a direct lesson in financial security—both literally and figuratively.

First, applicants for bankruptcy must go through some basic monetary schooling before completing the process. This includes credit counseling, as well as debtor education, which offers lessons, advice and tips for maintaining finances.

Living After Bankruptcy

After going through the process of bankruptcy, the real work is only half complete. Filers may need to commit to a lifestyle that incorporates less spending and fewer luxuries. Learning to live off of income is one of the first steps in this journey. For those with limited income, the transition can be quite difficult.

Establishing credit is another concern for those who have recently declared bankruptcy. For the most part, a secure line of credit is the first way to start. By making responsible purchases and paying them off on time, it is possible to move on to a regular, unsecured credit card with relatively low amounts of interest.

Bankruptcy offers the opportunity for debtors to attain financial stability. If you feel that declaring bankruptcy is the solution for you, having a San Antonio, Texas bankruptcy lawyer with you every step of the way can be beneficial. For the past 20 years, the Law Offices of Chance M. McGhee have helped clients break down their financial hurdles. Contact us today at 210-342-3400 for a free consultation.