What do I do after bankruptcy?

After your bankruptcy is over you can certainly begin enjoying your new life with your debts discharged and you don’t really have much that you need to do.  Your debts are now in the past and your future should be debt free.  There are just a few things that you can attend to:

1) Re-establish credit–  You will want to begin re-establishing credit right away after your bankruptcy.  There is no need to wait and you can certainly begin immediately.  You will want to get new sources of credit.  Loans, either secured or unsecured, that will appear on your credit report are a good way to begin to re-build your credit.  You can buy a car or furniture or anything that you pay off monthly and if you make your payments on time you will get positive points on your credit score.

You can and should also get 3 new credit cards after your discharge.  You should get solicitations from credit card companies right away after your bankruptcy is completed.   You can use these new cards to re-establish credit.  If you do not get solicitations then visit your credit union or bank where you have a deposit account.  They will probably give you credit there.

You can always apply for secured cards too.  These are cards where you give the creditor money and the creditor gives you credit based upon how much money you deposited with them.  These secured cards will report on you credit report just like regular cards so make your payments on time.  Remember also to keep your balances low.

 2) Check your credit report-  You will want to check your credit report after your discharge to see if all of your debts are properly reported as “discharged in bankruptcy”.   Challenge any debt not properly listed.  You can get your credit report for free at www.annualcreditreport.com.

 3) Stay out of debt- Be sure to be careful to stay out of debt.  You do not want to fall back into debt after your bankruptcy is over.  This is a good time to develop new habits with credit.  Use your cards to improve your score but pay the balances each month.  It is a good time to live debt free.  Remember too that you cannot file bankruptcy again for 8 years and you don’t want a second bankruptcy unless it is necessary due to some calamity.

 4) Move on with your life- You can now move on and get a new job or buy and sell property or travel and do anything you wish after your discharge.  You are required to report any large amounts of money you receive after your discharge but only for 6 months.  After that you can do anything you want and you are free of the system (as long as there was no fraud involved in your original bankruptcy).

5) Enjoy your new-found freedom Rmember that you are debt free.  Enjoy your new life!

I am bankruptcy attorney in San Diego.  Please visit my websites at www.farquharlaw.com or www.freshstartsandiego.com for more info. about any of these topics or call me for a free consultation at (619) 702-5015.  Call now for free credit report and analysis!

For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to: farquharesq@yahoo.com

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What bankruptcy can do for you!

Have you considered bankruptcy?  If you have many debts which you cannot pay then it may be good idea to consider filing.  If creditors are calling you 50 times a day and your credit score is shot then it might be time to consider it.  If you have lost a job, or faced medical issues and debt, or retired with huge debts, or if the debts have just been building for many years then it might be time to consider it.  (See here for additional reasons of why you should file for bankruptcy).

Don’t just put off the filing bankruptcy because the problems and the debt won’t go away.  The creditors will keep calling and will keep selling your debts to other collectors who will take the same actions.  Eventually they will sue and get judgments which could result in your wages being taken or your bank account being taken or your house being liened and sold.   Your credit score will never improve as long as you are in this cycle and you will have no peace.

The good news is that bankruptcy can eliminate all of this negativity and give you a fresh start in life.  You can get the creditor calls to stop immediately even before you file bankruptcy if you hire an attorney to represent you concerning your debts.  The Fair Debt Collection Practices Act states that all calls must stop once you hire a lawyer and all of those calls must go to the lawyer.

Once you file bankruptcy a “stay” descends upon you and everything you own.  This stops any and all attempts to collect these debts.  This would include any lawsuits that were filed against you as well as any garnishments or other collection efforts.  Even some of the money taken by garnishment or attachment can be returned to you.  Contact an attorney for this step.

Once you receive your bankruptcy discharge then you are no longer legally liable for those debts and they are effectively extinguished.  The former debts will appear on your credit report now as “discharged in bankruptcy” and they will no longer drive down your score each month.  The bankruptcy itself will lower your credit score in the short-term but you can rebuild your score in the long-term.  You will get new credit and use it wisely and rebuild your score that way.  People have financed homes in as little as two years after a bankruptcy.

So bankruptcy can do a lot for you to eliminate your debts and give you a fresh start but most of all it will give you piece of mind!  Now what is that worth?

I am a San Diego bankruptcy attorney.  Please visit my websites for more help at www.farquharlaw.com or www.freshstartsandiego.com.  Or call for a free consult on any bankruptcy or debt issue. at (619) 702-5015.  Call now for a free credit report and analysis!

If you or someone you know may need to file a bankruptcy then please get my FREE E-BOOK: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” by e-mailing me at farquharesq@yahoo.com.

What can I do if I can’t file bankruptcy for some reason? That’s easy, we settle!

(See my update on whether to use a debt settlement company or a bankruptcy attorney).

Yes, we can settle your debts!  Usually at a steep discount over what is owed.  You may have already received letters from creditors offering these discounts if you have held this debt for some time.  If a bankruptcy attorney calls the creditor and explains that you may file bankruptcy then you might even get a better settlement offer.

If you can’t file bankruptcy that means usually that you have too much income or too much property to file.  If your debts are fairly low then you may want to use that property or income to settle them.  Some of my clients have gotten or are getting a large payout on a lawsuit or an inheritance of some kind and they then would have too much money to file.  We then call the creditors and offer settlements and they are happy to get their money usually at a deep discount.

This may not seem like an option for you but you would be surprised how often this happens.  If you have some money or if you are due for a big payout in the future then it does not make sense to file for bankruptcy.  If the trustee finds out then he can keep the case open until those funds come in.  He will then use those funds to pay the debts in full if each creditor files a proof of claim and they usually do.  Since you are bound by law to report to the trustee anything that could be considered property to the estate it just does not make sense to file bankruptcy in some circumstances.

Some people just don’t want to file for bankruptcy.  If this is the case then you can also settle your debts.  The creditors will be happy to get paid.  Settling is not as bad as you might think.  A bankruptcy attorney has more clout and the threat of filing bankruptcy to use as leverage to get you a better deal.  A bankruptcy attorney should offer this as a service for those who cannot file for bankruptcy.  After settling these debts will be reported as “settled” on your credit report and in time your credit score will rise as these debts will no longer be reported as delinquent.

I am a bankruptcy attorney practicing bankruptcy law in San Diego CA.  Please visit my websites if you have more questions at www.farquharlaw.com or www.freshstartsandiego.com.  Or call my office for a free consultation at (619) 702-5015.  Call now for a free credit report and analysis!

For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to: farquharesq@yahoo.com.

Failure becomes success! Bankruptcy can turn what you think is failure into success.

We live in a country that worships success.  We are trained to seek success and successful people and we hold those who are successful in high esteem and we wish success desperately for ourselves.  Being called a “loser” is for some the worst kind of insult in our success driven culture.

We also have an aversion to failure.  Failure is something to be avoided at all costs.  It means in America that you must hang your head, get depressed, and it can mean worse.  After a failure you feel alone, isolated, and unworthy.  You may even feel that something is wrong with you as you look around you and it seems that everyone else has no problems.

Over the last few years a different paradigm has become more popular.  The idea that we learn more from our failures than from our successes has rung true for many.  People have come to realize that though a success may give you a false sense of superiority or invincibility and cover up other weaknesses, a failure may reveal to you areas in your life that need improvement or areas where you need to do more work.

You truly can learn from failures or experiences of failure more than you can from a success.  After a failure most people inevitably examine everything they did to get to that point with an eye to the future so they don’t repeat the failure.  In that critical examination a whole lot is learned about oneself and one’s actions and beliefs and goals. With a failure you are forced to ask what is truly important or what does success really mean.  Rarely does such a critical reexamination take place when one is successful in anything and if success comes too easy to people then they are robbed of a very great opportunity.

Think of the child stars for instance.  How many of them are functioning, well-adjusted, and happy adults?  And how many would you consider to be a success?  Very few.  Many child stars have extreme success at a very early age.  They get money, fame and fortune enough at an early age to set them up for life.  But we all know that these children usually grow up to be very disturbed adults.  Why is that?  Because fame and fortune came too early and too easily.  They were truly robbed in life of the opportunity to struggle and fail.  The struggles and the failures are a necessary and essential element of life.

According to a Harvard grad success is not all it’s cracked up to be anyway.  It can often feel like failure.  A Harvard student wrote an article on how he didn’t feel successful even after graduating from Harvard.  This should have been a time for him to celebrate success but his graduation left him feeling empty.

He began to describe in the article how students are taught at Harvard to be risk averse.  They are protected from failure and never allowed to fail.  These Harvard kids have known nothing but success as they graduated with honors from high school and now they have a Harvard degree.  But the author concludes that Harvard students have been robbed of their chance to fail.  He makes my point that failure is a tremendous learning opportunity and people need to risk failure instead of avoid it.  When it happens embrace it and learn from it.

The old adage that we learn more from our failures than our successes is true.  I have learned more from my failures than my successes in life and if you think about it the same will be true for you if you have been lucky enough to have failed at something.

I had a failed in a business venture that I desperately did not want to let go because I did not want to appear to be a failure.  It was very difficult for me to close the business and admit failure even though the business was losing money and obviously needed to be closed.  But after I did close the business I engaged in the mandatory self reflection that was a great benefit.  I learned to never make some of the mistakes I made again.  I readjusted my life and went out and retried everything.

The same can be done with your financial failure.  You at first will resist and try to make your situation work.  All of my clients do.  You will try to work harder and smarter and pay off your credit cards and other bills.  When this doesn’t work you will resist failure strongly.  When you finally break through and admit that a fresh start will help you then you will be ready.

Your debts can be wiped away while you move on debt free.  A financial meltdown can be a tremendous learning experience just like any failure can be.  You will learn more from this experience than the person who has no such problems will.  You can and will learn to live with in your means and manage your credit wisely as we all must.  Very few people are “serial filers” who continue to file bankruptcies.  Most learn their lesson and move on debt free and change their lives.

Donald Trump and many others who are considered very successful have used bankruptcy to get a fresh start, learn from their mistakes, and move on with new knowledge and a new life.

So embrace failure and welcome it as an opportunity to reflect, learn, grow and adjust.  Think of failure as a blessing and as a pathway to success and you truly will get success through failure.  (See my article on why you should file for bankruptcy).

I am a San Diego bankruptcy attorney.  Please visit my websites at www.farquharlaw.com or www.freshstartsandiego.com.  Please call for a free consultation on any bankruptcy or debt related issue at (619) 702-5015.   Call now for free credit report and analysis! 

If you or someone you know may need to file a bankruptcy then please get my FREE E-BOOK “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” by e-mailing me at farquharesq@yahoo.com.