==== ==== Hello from user. http://d0029sier7tdvrnfzeycn5p75i.hop.clickbank.net/?tid=GMSJMJF2 ==== ====
Bankruptcy is one of the most financially traumatizing episodes in a personÂ’s financial life. Bankruptcy can result in hundreds if not thousand of dollars a year in extra fees and interest not to mention the embarrassment of getting denied for credit. The appearance of bankruptcy can also result in denial of employment and even housing. The stigma of bankruptcy can even affect personal relationships and has been the cause of divorce in many homes. But many have found out that bankruptcy is not the end of the road. Many options are available to swim out of the quagmire that is bankruptcy and into full financial freedom. First of all, let us review the two most common types of bankruptcies; Chapter 7 and Chapter 13. Chapter 7 involves a ruling by a bankruptcy judge to liquidate all your assets and sell them to satisfy your debt while Chapter 13 allows for a restructuring of one's finances through a courtsupervised repayment plan which may extend for a period of 3-5 years. During this period, collectors are barred by law from attempting any collection activity. Chapter 13 is the most common because it allows one to keep their assets. The first step toward bankruptcy recovery is coming up with a sound financial plan. A thorough self-diagnosis should be conducted before embarking on a recovery plan. It is necessary to know where your financial hemorrhage is occurring. Keep an accurate log of income and expenditure preferably on an excel spreadsheet. It has been noted that people spend less when they are aware that a record of their every expenditure is being kept. The second step in bankruptcy recovery is to make an attempt to repair your credit. Although the actual bankruptcy judgment remains on the credit report for 10 years, you can work on other items listed on the report. In most cases people who have ended up filing for bankruptcy have become overwhelmed by multiple delinquent bills. Credit recovery involves acquiring a copy of your credit report and scrutinizing it for errors and discrepancies and then embarking on a deliberate attempt to address them. This can be done by either forcing the credit bureaus to correct erroneous items or even remove them completely. This step can have the desired effect of boosting your credit score. A third step to take in recovering from bankruptcy is to review oneÂ’s set of priorities. Many people who fall into bankruptcy have inconsistent to erratic financial priorities and invest their money, time and effort on pursuits that wreak havoc on their finances. Bankruptcy is also a result of low productivity, ie, spending too much energy and time on activities that are unprofitable. One of these is living beyond one's means (impulse shopping). Another is unwise use of credit cards and payday loans. People on the brink of or in bankruptcy also have meagre to non-existent savings and have little interest in long-term investing. We have seen that bankruptcy can cause great distress by adding hundreds if not thousands of
dollars to your overall cost of life through fees and higher interest rates not to mention that very few financial institutions will be willing to work with you in terms of extending credit. But we have also seen that a careful spending plan and aggressive credit repair can result in a complete recovery from bankruptcy and result in total financial freedom.
Jim Muturi is an online e-commerce and business management expert with 11 year experience in marketing online. You can visit his blog at http://getprosperous.blogspot.com for more information on financial wellness and credit repair.
Article Source: http://EzineArticles.com/?expert=Jimmy_Muturi
==== ==== Hello from user. http://d0029sier7tdvrnfzeycn5p75i.hop.clickbank.net/?tid=GMSJMJF2 ==== ====