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Rebuild your credit after bankruptcy

If you are dealing with an insurmountable amount of debt, you might be considering bankruptcy to give yourself a clean financial slate. But you probably have a lot of questions and worries about bankruptcy, too. After all, it can sound like a scary word. For example, you might be concerned about the effect it will have on your credit score.

Chances are, your credit score is already suffering if you are looking to file for bankruptcy. And while bankruptcy might ding it down a little bit at the start, do not fall for the misconception that filing for bankruptcy will tarnish your credit forever. Here is how you can rebuild your credit after bankruptcy.

Does bankruptcy mean my credit score will go from so-so to worse?

Their credit score is one concern that stops many people in debt from filing for bankruptcy. They theorize that their already so-so credit score, which barely qualifies them for loans and the like, will nosedive. They will not be able to qualify for anything again for many years.

Fortunately, some of these assumptions are incorrect. Here is a realistic look at what can happen to your credit score.

Equifax breach still a risk if you have bad credit

There is plenty of concern over the Equifax breach. If you have not yet looked into how the breach could affect you, then you could be placing your credit and finances in trouble. It is essential to stay on top of what is happening to ensure you do not become a further victim.

The information stolen could allow the thieves to use your identity. They could use current credit cards to make purchases or obtain new credit in your name. If you are not staying vigilant, it could add up to a terrible financial situation for you in the future. If you already have issues with debt, you are not immune. You could still be taken advantage of.

Can hurricane damage affect a bankruptcy case?

Each bankruptcy case is different, so it is impossible to generalize whether hurricane damage to your home, car and/or other assets may affect your case. That said, in many cases, hurricane damage does affect something.

Here is an example. Say that you are in Chapter 13 bankruptcy and had reorganized to keep two properties, one of which you rent out. However, a hurricane has now nearly demolished that rental property, and insurance covers only half of the necessary repairs. Further, because of the bankruptcy, you cannot get a loan to cover what the amount left over. In such a scenario, you may have to return to court to modify your Chapter 13 plan.

I am behind on house payments. Will I lose my home?

Perhaps you had to skip a month or two of mortgage payments due to an emergency. Or maybe you simply did not have enough money for your payment and other bills. Whatever the case, you might be afraid you are about to lose your home and that you could even have to file for bankruptcy

That does not have to be the case. It helps to act as quickly as possible, because the best foreclosure defense is being proactive.

3 signs you have more debt than you can handle

If you have built up too much debt, you might feel suffocated. It can increase your stress, reduce your credit score and put a strain on your finances. But while you might be aware that you have a significant amount of debt, you might not know if you have too much. 

Exactly how much debt is too much? There is no exact number. $15,000 in credit card debt may warrant bankruptcy for some, but others might be able to pay it off. While the exact amount of too much debt might depend on your unique circumstances, there are some universal signs you might be past the point of no return. 

3 ways to cope when you are financially overwhelmed

Finances are a source of stress for countless people. There are many factors that can contribute to this—job loss, medical bills or unexpected expenses. Even if you are not dealing with any of these, you may simply by struggling to make ends meet on your income and budget. When the stress becomes more than you can bear, though, you might find yourself completely overwhelmed by your finances.

According to Forbes, 80 percent of people who report that they are financially overwhelmed say that excessive debt is the cause. There are several steps you can take to prevent buckling under the pressure. Consider the following three tips for getting through a financial crisis.

What to do after vehicle repossession

The rate at which people filed for bankruptcy hit an all-time high during the economic recession. Things have been on the decline, and in 2016, approximately 800,000 people filed for bankruptcy in the United States.

Once a person starts defaulting on important payments, it is entirely possible for a lender to repossess the car. This can be extremely inconvenient, and many people panic when this occurs. It is important to remain calm and follow these steps to get through this time all right.

3 warning signs you have too much credit card debt

Credit cards are great when you use them wisely. If you do not handle them with care, you can significantly damage your finances. There is always the risk of high-interest debt piling up. If you are noticing you are not able to pay off your full credit bill each month, you might be wondering how bad of a situation you are in. It is possible that you are in more debt than you realize.

You need to know when you have too much debt so you can consider bankruptcy or other debt relief options. Here are some of the top warning signs that you have too much debt.

Options when you are facing foreclosure

If you are among the many who believe they are only a missed payment or two away from foreclosure, you may feel a large amount of anxiety as you try and navigate through the process of saving your home. You may have already tried improving your ability to pay each month by relying on tactics such as taking on a second job or renting part of your home out to a paying tenant. If such efforts proved fruitless, however, you may have reached the stage when you are trying to determine whether to continue to fight for your home or make the difficult decision to fold.

If you suspect a foreclosure is likely in your near future, consider taking the following steps.

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