There are several issues when thinking of filing for bankruptcy according to a Cicero bankruptcy attorney. One such issue deals with spouses who do not file. Spouses can be affected when it’s an individual bankruptcy. Spouses will not be affected if they file bankruptcy together under the same court costs, the same attorney’s fees and the same case. It’s a great way if you are a married couple and you are struggling financially and the debt is in both names or if you have separate debt but combined it’s just overwhelming, to file together and wipe out the financial hardship that might be causing an extreme burden on your family. Many divorces occur because of financial problems. If a couple has the ability to eliminate their debt and remove that financial obligation, the relationship might stand a better chance of success.
Keeping my clients in the picture is important to me. As a bankruptcy lawyer, I want to make sure that my clients are informed and that they know what they are signing. If you sign a reaffirmation agreement on a vehicle and something happens with the vehicle six months or a year down the road, you as the debtor are going to be obligated for the debt on that vehicle. If you can’t make your payments and the vehicle winds up being repossessed, the finance company has the ability to sell it at a deficiency and come after you for the balance. You as a debtor have to know that when you are agreeing to reaffirm a debt, you are putting yourself back on the hook for a debt that you could have eliminated when filing Chapter 7 bankruptcy but you have chosen to be obligated on that debt going forward.
As far as rebuilding credit, I recommend getting a secured credit card. First, the merchant is going to report that transaction to the credit bureaus so you are going to see some benefit from using that secured credit card. Two, you have the convenience of plastic and you are using your own money so you are not paying high interest rates on the credit. The third benefit is that eventually that secured credit card can be converted into an unsecured credit card which is really what you want in the long run. You would probably not get this type of worthy information if you tried to file bankruptcy yourself.
You can also try for a car loan shortly after filing. By applying for a car loan immediately after filing bankruptcy, you are going to expect to pay a higher interest rate than if you waited a couple years. You are also going to expect to pay a higher interest rate on someone who has good credit and who has not filed for bankruptcy in the past. Thus, there is so much more to bankruptcy than just knowing how to claim bankruptcy. Your lawyer can provide excellent assistance after the filing.