One of the most common myths about bankruptcy is that filing will permanently destroy your credit rating. This fear a major reason why many people who could benefit from bankruptcy do not file. It is important to remember that there is no such thing as a “permanent credit score.” Your credit rating after bankruptcy can improve if your financial situation remains stable. How Can You Improve Your Credit Rating After Bankruptcy? There are multiple ways you can improve your credit score after your debts are discharged in bankruptcy. However, the most important factor is ensuring your financial situation reflects stability. Pay all bills on time: Depending on your situation, you may have property that is exempt from your bankruptcy estate, or saved through other mechanisms. Continue to make timely payments on these assets after filing. Make timely payments on rent, utilities and other bills. It is important to maintain steady…
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A recent survey conducted by the financial website Bankrate.com claims 57 percent of Americans do not have enough money to cover a $500 emergency. Research from last year published by the Federal Reserve came to a similar conclusion. According to the Federal Reserve, which polled more than 5,600 Americans, 46 percent claimed they would have difficulty paying for a $400 emergency expense. As a result, car repairs, medical bills or unexpected illnesses push people to take on more debt. Saving for an emergency fund may help prevent these costs from turning into a financial nightmare. Saving for an Emergency Fund Requires Flexibility, But There Are Constants There are several ways to build an emergency fund. However, it is important to understand there is no “best way” to save for emergencies because people have varying financial situations. The trick is finding what works best for your individual situation and adapting. That…
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If you are struggling with excessive debts and other difficult financial problems, you may have considered types of bankruptcies for individuals. Depending on your financial situation, it may be impossible to file for Chapter 7 or Chapter 13 bankruptcy. Chapter 13 bankruptcy: In Chapter 13 bankruptcy, there are limits for secured and unsecured debts. These limits periodically change. As of April, 2016, filers must have no more than $1,184,200 in secured debts and no more than $394,725 in unsecured debts. Remember, unsecured debts are not backed by property. This can include medical bills and some credit cards. Secured debts are backed by property such as a home or car. Chapter 7 bankruptcy: There is no debt limit for Chapter 7 bankruptcy, but there are income ceilings in most circumstances. You must take the Chapter 7 means test to determine whether you can file. However, there is one large exception to the…
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*Credit card payments will not be accepted for bankruptcy cases, unless pre-approved by The Sader Law Firm. If you have a question about a credit card payment, please call our Office Manager at (816) 561 1818.
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