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Appleton WI Bankruptcy Law Blog

Be careful with new credit cards after you file for bankruptcy

Rebuilding your credit after bankruptcy is an important step. After all, if you don't begin using credit responsibly after your discharge, you will find it hard to secure credit in the future. Whether you hope to buy a home within the next decade or just want to qualify for the best rates on your auto insurance, working up to a good credit score can go a long way.

Unfortunately, many people fall into the trap of making the same mistakes after bankruptcy that they made before filing. Whether you file for Chapter 7 or Chapter 13 bankruptcy, you need to make smart decisions about how you use credit after your bankruptcy. That statement is especially true when it comes to credit cards after bankruptcy.

Bankruptcy can provide relief from medical bills

While there isn't an official chapter of bankruptcy that addresses only medical bills, people who are overwhelmed by these expenses might consider filing a personal bankruptcy. A Chapter 13 or Chapter 7 filing can provide you with the financial relief that you need.

One important thing to remember is that you can't file bankruptcy only for your medical bills. Instead, you will include all of your debts in the filing. This is troubling for some people because they want to keep up with all their bills.

Find financial freedom when you file bankruptcy

Financial obligations aren't usually anyone's favorite thing to deal with. For some people, they have become a source of major stress. When the bills are overwhelming you and you don't think that you have a way out, looking into bankruptcy might be in order. We can help you explore this option that might help you get out of debt.

Bankruptcy isn't something that you need to be ashamed of. It is a legal tool that can help you get back on top of your finances. Of course, there are some impacts of this filing that you will have to deal with for a while. For one, it is entered on your credit report so you will have to work to rebuild your credit once the case is over.

Bankruptcy might prevent vehicle repossession

When you don't make the required payments on your vehicle, there is a chance that it will be repossessed. This is a difficult situation for most people, but it is especially troublesome if that is your only vehicle. Fortunately, there are some ways that you might be able to save your vehicle from being taken.

You might be able to work out a deal with the lender to have the vehicle refinanced. This could help you get your payments current and might even lower the payments some if they are able to extend the number of months that you have to pay the balance off. Some lenders might not be able to provide you with a very short grace period to get the payments caught up if they are unable to extend a refinancing offer to you.

Repayment plans for Chapter 13 bankruptcy are often complex

One of the components of a Chapter 13 bankruptcy is that you are going to have to make regularly occurring payments to the bankruptcy trustee. These go toward repaying the creditors who are included in your filing. Typically, you are going to make payments for 36 to 60 months.

The method for determining what your payments will be is rather complex. The court doesn't just add up your debts and divide those by the number of months in your plan. Instead, various factors come together to determine what you are going to pay each month.

Consider how Chapter 7 bankruptcy will impact your life

Filing a Chapter 7 bankruptcy is a big decision that can impact you for years in the future. You have to think about the entire situation before you make your decision. This is often a necessary step that is brought on by things you can't control. It is hard for some people to accept, but it can be the fresh start that truly helps you to turn your life around.

We realize that you have some questions about this type of bankruptcy. One of the most important things to know is that you don't have to make payments to the bankruptcy trustee. Since you won't have to make payments, your assets classified as non-exempt will need to be liquidated. We can help you to find out what is exempt, which means you will be able to keep it.

Don’t let these bankruptcy myths affect your decision

It's never easy to find yourself thinking about bankruptcy, as this means your finances are in bad shape. However, if it's the best way to regain financial control, it's an idea you absolutely need to consider.

There are many bankruptcy myths that can affect the decisions you make, so you need to beware of these at every turn of the road.

  • You will lose everything in bankruptcy. Many people believe that bankruptcy can give them a fresh start, but not until they lose everything. You may lose some assets as a result of your filing, but some property is exempt.
  • Bankruptcy will relieve you of all your debts. While you can wipe clear many types of debt with bankruptcy, this doesn't hold true across the board. For example, bankruptcy doesn't have any impact on student loan debt, alimony payments or child support.
  • Filing for bankruptcy means you don't know how to manage your finances. Although you may have made some poor decisions, remember this: Bankruptcy is often the result of something that is out of your control. For example, losing your job or becoming ill with a serious disease can both result in financial problems.
  • Filing for bankruptcy will doom you in the future. Yes, a bankruptcy filing will make it more difficult to secure a loan in the future. Subsequently, buying a car or home may be a challenge. While true, you can get your finances back on track. For example, using a secured credit card allows you to slowly rebuild your credit.

Get your finances under control before they get worse

We recently discussed some of the tips you might use when you are battling high credit card bills. One thing that many people don't realize is that there are times when offers that you receive might be too good to be true. Trying to use one of these means that you are going to be scammed out of your hard-earned money.

When you are in debt, your goal is probably nothing more than just trying to get out of it. You might not be concerned with paying off everything, but you might want to knock some bills down so that you can cut down on the minimum monthly payments.

You have options for handling mounting credit card bills

Have you ever sat down with your credit card bills and added up what you have due for minimum payments each month? This is often a troubling realization, especially if you have multiple cards. There are ways that you might be able to handle this situation if you find that you aren't able to keep up with the minimum amounts due.

Your credit card company wants you to pay what you owe. When you miss payments, they will get nervous. Instead of just ignoring the fact that you owe them, you should find out if they have options to help you. One of these is a hardship payment program.

Know your options when you are considering bankruptcy

Filing for bankruptcy is a big undertaking that you need to think carefully about. When you make the decision to move forward with it, you must be prepared to do what is necessary to get the case completed successfully.

For individuals, there are two types of bankruptcy that are most common. There are a few main points that differentiate these two types.