Get Started Obtaining Much-Needed Debt Settlement With the Help of Denver Bankruptcy Attorney Wink & Wink
A new year means a chance to make a fresh start. However, if you’re already dealing with overwhelming debt, that debt won’t just vanish on its own. In fact, it may just get worse unless you take serious action, such as filing for bankruptcy.
For many people, the last couple years have created substantial financial hardships. Maybe you lost your job because of the COVID-19 pandemic or dealt with illness or the death of a loved one, leaving you with a mountain of medical debt and other bills to pay. Perhaps inflation and the increasing cost of things is adding to an already challenging financial situation.
Perhaps you’re in need of debt settlement, or maybe it’s time to consider filing for bankruptcy.
Bankruptcy doesn’t mean your life is over or that you’ll now be living on the street with no possessions or a dime to your name.
In fact, filing for bankruptcy when you’re in need of debt relief can be a smart, sensible way to make 2022 a year of financial fresh starts.
How to File for Bankruptcy
The first step is speaking with a trusted bankruptcy lawyer, such as Wink & Wink of Denver, Colorado. They’ll help you learn how to file for bankruptcy (if it makes sense for your case), assist you throughout the process, and help you keep as many of your assets as possible. They’ll also help prepare you for what happens in bankruptcy so that you’ll know what to expect and how to succeed after it’s over.
The bankruptcy process can involve the Bankruptcy Court, but most cases do not have a proceeding before the Court and the vast majority of debtors who file bankruptcy never go to Court. However, there is a bankruptcy trustee appointed in every bankruptcy who handles your case, and conducts your meeting of creditors. Every bankruptcy has a meeting of creditors (the people or companies to whom you owe money) which the debtor must attend. However, despite its name, creditors very rarely show up and most of the time you just have to answer questions from the bankruptcy trustee. Depending on which type of bankruptcy you file (Chapter 7 or Chapter 13), you may be required to make some payments toward your debt on a 3- to 5-year repayment plan (Chapter 13). In both Chapter 7 and Chapter 13, you may get the vast majority of your debts wiped out completely.
Unsurprisingly, there are numerous forms to fill out and documents you’ll need to provide. A skilled bankruptcy attorney, such as Wink & Wink, will make sure everything is correct and nothing is missing. While you can file for bankruptcy on your own, there’s a serious risk that even the slightest mistake could make you lose more of your assets than necessary or not get a positive outcome to the case. That’s why it’s crucial you speak with a bankruptcy law firm.
Life After Bankruptcy
The good news is bankruptcy can be a sensible way to start your financial life over and get a fresh start in 2022!
While your credit may take a hit when you file bankruptcy, it can recover quickly after bankruptcy. Within a year or two of filing bankruptcy, you’ll likely have better credit than before you filed and won’t be completely out of luck when it comes to finding a decent home or obtaining credit.
Plus, there are some things you can do to make life post-bankruptcy easier:
- Renting an apartment – It may take a few years after filing for bankruptcy before some apartment complexes or landlords will rent to you. However, you may have better luck trying to rent from an individual owner or small apartment building rather than a large professionally managed company. Having a cosigner may also help you obtain an apartment. Another option is to live with a family member or a friend for a few years while you build up your credit again.
- Pay Bills in Full and on Time – Now that you’ve got this fresh start, it’s time to be darn near perfect when it comes to your finances. Keep a budget and stick to it. Pay every bill every month in full and on time. Show creditors you’re a reliable client. There is no better way to rehabilitate your credit after bankruptcy.
- Get a Secured Credit Card – Many lenders may be hesitant to extend credit to you the first few months after your bankruptcy. However, you’ll likely be eligible to get a secured credit card, where you first deposit money and then you can spend up to that amount with that card. For example, if you deposit $1,000, your credit line will be $1,000. Paying this off in full every month will show creditors you can be trusted to one day again have an unsecured credit card (what we normally think of when we think of a credit card).
How Long Does Bankruptcy Stay on Your Credit Report?
Another fear of bankruptcy is that you’ll have a giant scarlet “B” on your credit report the rest of your life and never be able to get credit again.
Not true at all.
While bankruptcy is on your credit for 10 years, the real impact on your credit is not nearly that long. You can have a 700+ credit score within 1-2 years of filing bankruptcy and be eligible for a mortgage within 2-3 years.
To achieve the speediest recovery, it is crucial to be on your best financial behavior after filing for bankruptcy in 2022. Stick to a budget, reduce expenses where you can (such as living with a friend or family member while you build up your credit again), and pay all bills in full and on time.
Make 2022 the Start of a New Financial Life
If you’re dealing with crippling debt, it’s time to speak with Denver bankruptcy attorneys Wink & Wink. They’ll review your case and see if filing for bankruptcy is the right choice for you. They’ll also prepare you for what happens in bankruptcy so that you can be back on your feet as soon as possible. Call us today at 303-410-1720 today. or contact us online.