Living Life After Bankruptcy | We Buy Houses LA
Going through a bankruptcy case is probably the most challenging financial situation one could be facing at a time where money could mean everything and anything. The credit score will plummet down, with nothing to stop it or slow it down. And the bankruptcy case will stay on your credit report for 10 long years.
For a period of time, it may be difficult to get a loan or apply for a new credit card. Lenders may see this as a threat since one has managed to legally write off some of the past debts. It is a dark time but it doesn’t mean no light of hope will come shimmering in the hopelessness of the situation.
“Bankruptcy filings are continuing to decline, with fewer than 800,000 people filing in federal courts last year. Although 800,000 seems like a lot, it pales in comparison to the height of the economic collapse in September 2010, which saw nearly double the number of filings, according to statistics released by the Administrative Office of the U.S. Courts,” – an excerpt from the article posted on the National Bankruptcy Forum site.
Life Doesn’t End After Owing So Much Debt
Rebuilding your credit score is a priority after the bankruptcy case is discharged. We buy houses LA from households still dealing with bankruptcy, bad credit score, lien, or bad mortgage. Recover from the situation by taking slow but consistent steps that could help your smooth out your credit score.
Reflect On The Situation
First action step is not to stay in one place, which also means not to get stuck on the problem. You’re bankrupt now with an ugly credit score, that’s a fact. But it doesn’t mean it will be the same for the rest of your life. Start asking yourself important questions.
How did you get into the situation? What financial management system did you use that put you through so much debt? With the experience, what have you learned? By finding answers to these questions you’ll be able to reorganize your lifestyle and adjust your spending habits.
Create Realistic Budget Plan
Be extra vigilant about your spending from now on. You will be living with a smaller budget with little financial options at the start of your recovery. With utmost control over the money you have, managing your cash flow will help prevent more debt from piling up.
By knowing how much you have up to the last cent, you’ll try to live below your means and avoid spending excessively and impractically. Including a small amount of savings is another step to recovery. Experts also recommend having an emergency fund for future emergencies or unexpected events.
Well, applying for a new credit card won’t be easy, but still, not impossible. There may be banks that would refuse to lend you money right after finding out about the bankruptcy case, though not all lenders follow the same policy. There are credit lenders who are willing to help financially challenged individuals gain back their score.
“A secured card is different from a prepaid debit card. With a secured card, your deposit serves as a backup in case you don’t pay your bill. With prepaid debit, the money you “load” onto the card is used to pay for your purchases. Prepaid debit cards do not help you build credit,” – a valuable Nerd Tip by Kevin Cash.
Recovering from bankruptcy is a tedious process, however, once you fully recover from it, you will be good as new. You wouldn’t have to resort to sell my house fast Los Angeles or hide away because of shame anymore. Anyone can rise up from a downfall with the right means and proper guidance.
SellAnyHouse LA is a home buying company serving Los Angeles residents by providing alternative solutions to their most difficult housing and financial issues. We buy houses LA regardless of the reason for selling or in whatever condition the property is in. If you wish to break away and have a change of scenery, sell your house to us. It will be simple, painless, and fast!
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