People are often amazed at the relief and peace that returns to their lives after filing for bankruptcy. Often they do not realize how much pressure they are under until after it is gone. Usually, Irvine / Rancho Santa Margarita bankruptcy filers find they have more money to spend. This newfound financial freedom enables them to spend money on things that are really important instead of having everything go to demanding creditors. The financial stress that often destroys marriages suddenly evaporates. You are finally debt free, and you can have a peaceful life again. Contact us at 949- 450- 8500 to learn how we can help you find financial freedom.
Rebuilding Your Credit & Your Life - Hallstrom, Klein & Ward LLP
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Life After Bankruptcy
Bankruptcy Is a Solution, Not a Stigma
There are so many people filing for bankruptcy in the current financial climate that it is no longer looked at as a negative thing. You probably know several people who have filed bankruptcy, although you might not know it. This is because people who have filed for bankruptcy usually live normal lives, free of the crushing debt that used to overwhelm them.
After filing bankruptcy, you will likely have a better credit score, have money to pay your bills on time, and even save money for the first time in years. Bankruptcy does not have the stigma that it used to have. Instead, bankruptcy provides you with the opportunity to make a fresh start and move on with your life, debt free.
The relief one feels after filing bankruptcy is often indescribable. Finally, the constant stress is over. You too can turn your life around with the help of an experienced Orange County bankruptcy lawyer.
Even though it may be more difficult to get some loans and credit after bankruptcy, interestingly, you will still likely receive offers for credit cards and be able to obtain other types of loans. Generally, the interest rates will be higher and the credit limits will initially be lower for those who have filed bankruptcy, but they will still generally be able to obtain credit.
Often it is easier to obtain credit cards after filing for bankruptcy protection than before one files bankruptcy. This is primarily because the lenders understand that you typically cannot file a bankruptcy again for another 8 years. You will also have fewer bills to pay, so you will have more ability to pay your new credit card bills. All those who file for bankruptcy in Orange County will have taken a class on financial management, as this is a requirement in Chapter 7 bankruptcy. Lenders often feel that with this training, individuals can handle their financial affairs better after bankruptcy than before. So, you may be a better credit risk after bankruptcy than before!
Your FICO score will typically increase right after filing bankruptcy because about 1/3 of your credit score is based on the total amount of your outstanding debt which is eliminated through bankruptcy.
It is not uncommon to receive credit card solicitations soon after you file bankruptcy. We typically recommed that our OC Chapter 7 and Chapter 13 bankruptcy clients get a few credit cards after they file bankruptcy, and then pay off the balance each month to re-build their credit.
It is generally not difficult to obtain a car loan after one files bankruptcy. You may actually be a better credit risk after filing bankruptcy than before because you will have fewer bills to pay and your FICA score typically will improve. Auto loans are secured so if you do not make your payments, the lender will repossess the car. Consequently, auto lenders have additional protection than unsecured credit card lenders. Car dealers a very anxious to sell cars in this slow economy, so you will probably be able to obtain auto financing, but the interest rates will likely be a little higher than for someone who has better credit history.
Consult With an Experienced Irvine / OC Bankruptcy Lawyer
While we encourage you to peruse this website to learn about various bankruptcy aspects, please remember that only a one-on-one consultation with a skilled bankruptcy attorney can help you find the best solution for your situation. Our attorneys have many years' experience helping Orange County bankruptcy filers find customized solutions that might include various bankruptcy foreclosure prevention methods, such as a mortgage strip in Orange County. Please contact us today at 949- 450- 8500 for your FREE consultation, during which time we will discuss the solutions that fit your circumstances and preferences.
Individuals are often surprised to discover that they actually are able to obtain a home loan after they have filed for bankruptcy. Home loans are more difficult to obtain today in general due to the sub-prime lending crisis, but individuals who have filed bankruptcy usually can obtain a real estate loan if they provide a sufficient down payment.
