Last updated 4 days ago
Even though filing for bankruptcy can help you achieve a fresh financial start, the period after you file will likely present some new challenges. For example, your Chapter 7 filing will remain on your credit report for 10 years, which can impact your credit score. For this reason, the steps you take to manage your finances and re-build your credit score after bankruptcy are crucial to improving your credit and moving forward with your financial future.
Cut down on luxury spending:
It may seem like common sense, but it is very important that you analyze your spending practices and stop spending money on unnecessary items. Many find cutting the following from their budget leaves them with extra cash: eating out, coffee expenses, cable TV, land-line phone and internet.
Rebuild your credit:
How quickly you are able to rebuild your credit after bankruptcy will depend on the number of debts you decide to continue to pay after bankruptcy. Continuing to pay a mortgage or car loan after bankruptcy will not only allow you to keep your home or car, but will do wonders to your credit score Paying non-dischargeable debts, such as student loans, on time after bankruptcy will also help you rebuild the score. You can also rebuild credit by applying for and using a secured credit card after your bankruptcy discharge. A secured credit card establishes your credit limit to an amount that is at least equal to the amount of money you pledged as collateral on the account. In many cases, the credit limit can be higher.
Stay positive:
You will be better able to recover if you adopt a positive attitude and are mentally ready to rebuild your personal finances. Instead of dwelling on the past, begin to save what you can, create an emergency fund, and investigate the various ways you can begin to rebuild your credit.
If you would like to learn more about the bankruptcy process and how to rebuild your credit after bankruptcy in Wisconsin, you can schedule a free bankruptcy consultation with Sapinski Law Office S.C. in Milwaukee or Appleton. We have helped thousands of clients in the Eastern District of Wisconsin become debt free and restore their credit score after bankruptcy. Get a real fresh start! You can reach our Milwaukee office at (877) 939-1739 or schedule a bankruptcy consultation in Appleton by calling (920) 358-0333.
Disclaimer:
The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.
Last updated 4 days ago
Under the United States Bankruptcy Code, individuals have the right to file a bankruptcy petition to obtain relief from their financial obligations and a fresh financial start. While Chapter 7 of the U.S. Bankruptcy Code liquidates non-exempt assets and discharges debt, other Chapters, such as Chapter 13, help the debtor create a manageable repayment plan. Under either type of bankruptcy the petitioner gets relief.
End Creditor Harassment
For individuals considering bankruptcy, one of the most difficult parts of day-to-day life is the constant reminder of debt in the form of harassing phone calls or letters from creditors. As soon as a bankruptcy is filed, an automatic stay is imposed that stops all activity against the debtor and his/her property. The stay stops just about everything, including collection notices, phone calls, utility disconnection and active wage garnishments.
Protect Your Property
Filing for bankruptcy will stop collection activity taken against a petitioner’s property. This means that a bankruptcy petition stops the repossession of a vehicle. If a car has been repossessed, you may be able to file Chapter 13 and get the vehicle back, if you don’t wait too long to file. Through Chapter 13, you can lower your car loan payment by reducing the interest rate and, in some cases, force the creditor to only accept an amount equal to what the car is worth. Chapter 13 also stops home foreclosure and gives you time to get current on mortgage loans.
Eliminate Most Unsecured Debts
Unsecured debt refers to obligations not backed a specific asset. Some common examples of unsecured debt are credit card obligations, medical bills, rent, and utility payments. Mortgages and car payments, on the other hand, are considered secured because they are typically backed by the real estate or vehicle. Filing bankruptcy under both Chapter 7 and 13 can help debtors discharge unsecured debt.
Sapinski Law Office S.C. understands the stress and uncertainty that accompany mounting debt obligations. It is our mission to help our clients find the best bankruptcy or non-bankruptcy debt relief option to suit their financial needs. If you would like to schedule a free consultation with a Milwaukee bankruptcy attorney, give us a call at (877) 939-1739. For a bankruptcy consultation in Appleton, call (920) 358-0333.
Disclaimer:
The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.
Last updated 14 days ago
After filing for bankruptcy, it’s natural to have some reservations about spending your money going forward. Even though you have found relief from your creditors, you may worry about ending bad financial habits. The key to improving your financial lifestyle is to find an effective way to keep track of your savings and spending practices.
With the help of the EasyMoney - Expense Manager app, you can always keep track of where your money is going. Not only does this app track your expenses, but it can also remind you of upcoming bill deadlines. By downloading the EasyMoney app, you can give yourself peace of mind, knowing your future finances will be properly managed.
Call (877) 939-1739 to speak with the bankruptcy team at Sapinski Law Office S.C. Milwaukee bankruptcy attorney Andrew Sapinski will work with you to determine your best debt relief option. To schedule an appointment in the Appleton area, call (920) 358-0333.
Disclaimer:
The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.
Last updated 16 days ago
If you’re considering filing for bankruptcy in Wisconsin, you’ve probably heard of secured and unsecured debt. The fundamental difference between the two is that secured debt is backed an asset. Consider mortgage loans and car loans. In each of these situations, failure to make the loan payments results in the repossession of the house or car. Unsecured debt, on the other hand, isn’t tied to a particular asset and failure to pay the debt does not result in repossession of an asset. Examples of unsecured debts include credit card obligations, payday loans, child or spousal support, and medical bills.
Knowing the difference between these two debt classifications is crucial for understanding how a particular bankruptcy Chapter will affect you. For example, under a Chapter 7 bankruptcy most of your secured and unsecured debts can be discharged. However, if you don’t make payments on a secured loan, the creditor will still be able to repossess their collateral. If you wish to file Chapter 7 and keep the collateral, you will be required to get current and stay current on those payments.
Chapter 13, on the other hand, will stop repossession and help you consolidate your secured loans into one low monthly payment. Most secured loans must be paid in full through the Chapter 13 plan with interest. However, you can often lower the interest rate you pay on those loans. In some cases, the secured creditor can be forced to only accept full payment on the value of their collateral, instead of the full balance owed.
There is a lot of room for flexibility when it comes to the treatment of unsecured creditors in Chapter 13. They may receive nothing, something or full payment through the Chapter 13 repayment plan. How much they receive will typically depend on your assets, income and pre-petition financial dealings. A few unsecured debts, such as some income tax debts, get “priority” status in Chapter 13 and will need to be paid in full through the Chapter 13 plan.
For more information on general bankruptcy terms, contact the bankruptcy team of Sapinski Law Office S.C. in Milwaukee by calling (877) 939-1739. To schedule a consultation with a bankruptcy attorney in Appleton, call (920) 358-0333. All initial consultations are free, so don’t hesitate to see how we can help you become debt free.
Disclaimer:
The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.
Last updated 19 days ago
In certain situations, filing for bankruptcy may not be in the debtor’s best interest. Debt negotiation is a non-bankruptcy debt relief option where the creditor forgives a substantial portion of the debt that is owed. The debtor pays only a portion of the balance and the remaining debt is forgiven. Typically the debtor must pay the agreed upon portion in a lump-sum. The reason creditors are open to these agreements is because most bankruptcy cases are Chapter 7 no-asset cases. That is, the assets are exempt and not subject to liquidation by a Bankruptcy Trustee. The creditor stands to get nothing and faces certain discharge of the debt owed to them.
One key to understanding debt negotiation is recognizing that creditors hold much of the decision-making power. Also, in order for a debt negotiation to be successful, the debtor needs to understand how creditors think, what to say to them, and when to begin the negotiation process. You need to know when a creditor is bluffing and when they are serious. For this reason, hiring a bankruptcy lawyer who has experience negotiating settlements is strongly recommended. Your lawyer will know when and how to negotiate and will properly document the settlement and get it in writing so it is binding. Different tactics work best for each creditor and an experienced lawyer will know what tactics are best for your unique situation.
Would you like to learn more about the debt negotiation process in Milwaukee? You can schedule a free consultation with Sapinski Law Office S.C. by calling (877) 939-1739. To meet with a bankruptcy lawyer in Appleton, call (920) 358-0333.
Disclaimer:
The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.
