Once you have gotten your new start from bankruptcy, there are interesting new challenges that can come your way as a result of the filing. Many wonder about their credit rating post-bankruptcy. Of course, this will have taken a serious hit if you had good credit prior to filing. But many people see their credit even bump up after bankruptcy because it has been bad for so long. If you’re wondering about the specifics of the effects bankruptcy will have on your specific financial lifestyle, bankruptcy lawyers in dallas tx could be the right people to help you learn the effects of bankruptcy on credit, etc.
Filing for bankruptcy provides a societal financial safety valve according to some scholars and economists. Members of the American Bankruptcy Institute, which puts itself forth to the world as a nonprofit organization to further educational and world research into bankruptcy in the country. There is not such thing as debtors prisons in the United States today, and the benefits of bankruptcy can be quite compelling, even considering the downsides.
Following Bankruptcy, a Financially More Prudent lifestyle
For those who have filed for protection under Chapter 13 bankruptcy, paying some or all debts through a reorganization plan will last 3 to 5 years, during which time the bankruptcy court sets with your budge an amount to pay the bankruptcy trustee who will then portion that out to secured and also if there is any left over to the unsecured creditors each month of the 36-60 month plan.
This usually means your lifestyle might now become a no-frills/slimmed down financial lifestyle.
For those who have you received protection under Ch 7 bankruptcy, most debts have been eliminated, which leaves a person with a sort of blank slate and an earning power that can be used for whatever they choose moving forward. Getting an emergency fund will be very important in both situations of chapter 7 and chapter 13 bankruptcy because this will allow the debtor to move forward without getting into the same situation in the future. Call a licensed bankruptcy attorney for more information.