Bankruptcy Exit Plan
A San Jose bankruptcy lawyer explains the bankruptcy exit plan...
Most debtors contemplating bankruptcy often hesitate to file because they fear the long term impact bankruptcy will have on their credit and their ability to function in today’s society without good credit. A simple solution to this dilemma is having a good bankruptcy exit plan.
To begin, despite what banks or neighbors may have told you, bankruptcy is not a one way ticket to financial purgatory. Most debtors when they file already have poor credit and a high debt to income ratio. Once debt is discharged in bankruptcy a debtor’s debt to income ratio will immediately improve. Thus any bankruptcy exit plan should begin with a debtor running their credit to ensure that the debt has actually been removed from their credit report.
A good bankruptcy exit plan also acknowledges reality. Thus, debtors should understand they probably won’t receive credit card solicitations for 18 to 24 months. Thus, a good bankruptcy exit plan will account for this period of time. Despite what some may say, it’s absolutely possible to survive today without credit cards. Debtors simply need to account for all of their expenses and calculate a daily, weekly, and monthly budget based on their income. If a debtor is overextended they should downsize. If a credit card needs to be used for purposes such as renting a car or hotel room, debtors should use a debit card.
Last, any good bankruptcy exit plan should include a savings plan. Rather than depending on credit cards to get through tough financial times, post bankruptcy a debtor should start saving about six to nine months worth of living expenses. These funds can then be used during emergencies rather than credit cards.
If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!
