Financial difficulties can have a dramatic effect on our lives. Find out how to understand the impact of bankruptcy and move forward with life after declaring bankruptcy.
Understanding the Impacts of Bankruptcy
Filing for bankruptcy is a big decision for you and your family. And while the process can seem overwhelming and even emotionally taxing, understanding the impacts will help ease your mind. Knowing what to expect goes a long way toward relieving anxiety. The most important thing is moving forward, so let’s look at some ways to go about that.
Loss of Property
Loss of personal property is one of the more unpleasant aspects of filing for bankruptcy. There are certain items that are exempt, and exclusions vary by state. You can keep a vehicle, some equity in your home, and any work-related tools you require for earning income. However, other items will be sold by a trustee to pay against your debts. This includes secondary vehicles or homes, family heirlooms, jewelry, and collections of stamps, cards, or books that may have value.
Damage to Credit
Your credit report will also take a hit, and all the information related to your bankruptcy will be available for public viewing. This will affect your ability to get new credit from lenders with favorable rates. It will be crucial that you start rebuilding your credit right away. Paying your bills on time is an absolute must after filing for bankruptcy. CreditGUARD will be here to ensure those bills get paid on time so you can focus on your family and moving forward.
You should also be aware that while a lot of debt can be eliminated by bankruptcy, there are some debts that are off the table, and you will still end up responsible for. This includes any student loans, child support, court fines, or alimony. Any reaffirmed debt will also remain, as will taxes owed to the government.
The Emotional Toll
The experience itself of filing for bankruptcy can be frightening and draining. You will need to have some difficult discussions with your family, and you will have to make a lot of changes financially to prevent the debt from piling up again. It can be easy to slip back into old habits and find history repeating itself. You can find yourself adrift in a sea of financial hardship, feeling like you have no control over the situation.
The truth is, you do have some control over what is happening, and if you take concrete action to change your habits, you will see definitive results. CreditGUARD is here to help. Our debt consolidation programs will ensure that you are taking steps to avoid bankruptcy. CreditGUARD cannot accept new clients who have filed for bankruptcy, but there are other resources such as your local library or 211 which may be helpful.