William H. Lively, Jr

Bankruptcy is actually a way to rebuild your credit score

Many people find that even saying the word bankruptcy leaves a bad taste in their mouth. They may have been raised to believe that anyone who seeks such protections is unscrupulous or irresponsible. The modern American lifestyle, unfortunately, often requires the use of credit.

In some cases, even individuals who have always been responsible with money can find themselves over their heads in debt, often due to medical expenses that they have no way to pay. You shouldn't have to live in fear of a creditor coming to call or the potential of losing your home just because you don't want to damage your credit or social standing.

Thankfully, the idea that a bankruptcy will haunt you for the rest of your life is only a myth and not the reality experienced by those who file for bankruptcy protection. Not only can you move on with your life after bankruptcy, but you can also use it as a tool to start building better credit for a healthier and happier future.

Bankruptcy helps you clear the way so you can pay the necessities

The main benefit of bankruptcy, other than the automatic stay against collection activity, is the fact that it offers a discharge of most unsecured debts. Credit card debts and medical debts are often at the top of the list of financial complications people have that make their lives difficult.

Imagine how much simpler your financial situation would be if you didn't have to struggle to make minimum credit card payments every month or worry about those unpaid medical debts. The hundreds of dollars or more that you allocate to those bills every month can go back into your budget and help you achieve financial solvency after bankruptcy.

However, the most important thing you can do is to avoid falling back into the same trap of accruing too much debt. Otherwise, you're bankruptcy will not solve anything. Even worse, once you successfully file bankruptcy one time, there are limits on filing for future debt.

Avoiding debt is not the same thing as avoiding credit

People often think that they won't have the option for credit after a bankruptcy. The truth is that many credit card companies are eager to sign up those who have just discharged debt in bankruptcy. This is partially because they know these individuals can't file bankruptcy in the near future.

Finding one or two credit cards and slowly rebuilding your credit is a wise decision. However, it's important that you look at the costs of the cards, including annual fees. Minimize the overall cost of your credit, and make every effort to pay your cards in full every month. The only purpose they should serve is to help you rebuild credit, not to actually extend significant amounts of credit to you.

If you use them wisely, you will find that you have more credit options within two to three years of your discharge. You may even be able to qualify for a mortgage.

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William H. Lively, Jr

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William H. Lively, Jr
432 S Bonner
Tyler, TX 75702

Phone: 903-920-0008
Phone: 903-593-3001
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