Refinancing after Bankruptcy: Wiping the Slate Clean

2007-03-08 10:33:40

( Legal )



THE LAST RESORT

If you are deep in debt, filing for bankruptcy should be a final resort because while bankruptcy may protect you from lenders and give you a chance to start over, it can still be a disheartening experience, one that can be very difficult to recover from.

Bankruptcy is an action you should take only after exhausting all your bankruptcy alternatives. And there are many bankruptcy alternatives out there; one just may be the solution you are looking for.

An effective bankruptcy alternative is to approach your lenders, tell them your financial difficulties and ask them for easier payment terms until you can get back on your feet. Most creditors will be will be more than willing to work out a suitable arrangement if they feel that you are sincere in your desire to make good on your dues.

However if individual or small business bankruptcy is unavoidable, make sure you shop around for reputable bankruptcy attorneys. Bankruptcy attorneys will file your case and make all the necessary arrangements for the selling of properties and payment of debts. Filing for bankruptcy status gives you an “automatic stay,” during which no creditors can harass you for payments.

REGAINING CONTROL

The good thing about bankruptcy is the starting anew. After wiping the slate clean, you can rewrite your credit history through refinancing after bankruptcy. Refinancing after bankruptcy is available to you six months after the filing, and is the best way to find favor once again in the eyes of the financial community.

Refinancing after bankruptcy, similar to mortgages after bankruptcy, is a service extended by banks and other lending institutions as a way to show their sincere willingness to help you get back on your feet again.

If you plan to avail of refinancing after bankruptcy, be one step ahead. Make sure that you make good on your bills early on to prove you have mended your ways and have gained control over your income.


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