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Financial Tips

Top Bankruptcy Myths in Alabama

By | Bankruptcy Law, Financial Tips | No Comments

There are a lot of myths surrounding bankruptcy that can cause unnecessary hardship and stress. 

There are a lot of misconceptions that Auburn and Opelika residents have about the bankruptcy process, including how filing bankruptcy will affect them moving forward. Friends, family, and colleagues are all going to weigh in; however, it is always better to trust the opinions and advice of trained professionals like David S. Clark, an experienced bankruptcy attorney in Opelika, Alabama. 

DISCLAIMER: The following blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.

Need Bankruptcy Help? Call David S. Clark

Myth 1: Filing For Bankruptcy Means I Will Lose Everything 

Today’s bankruptcy laws offer every debtor many “exemptions” so that any Alabama resident may protect as much of their property as possible. While Chapter 7 bankruptcy is referred to as “liquidation,” it is much less common for one’s assets to be at risk. 

Generous exemptions exist and can limit risk related to your residence, vehicle, some cash, retirement accounts, and most household goods. Ultimately, most property that is considered necessary for life will be exempt from Chapter 7 bankruptcy.  

Myth 2: Everyone Will Know I’m a Failure

Bankruptcy is often due to circumstances beyond an individual’s control, such as divorce, job loss, and major illness. Bankruptcy is rarely the result of irresponsible financial behavior. Rather, filing for bankruptcy relief shows an understanding of one’s financial issues and a willingness to address them.

It is true, however, that bankruptcy is a matter of public record. There may be some reporting regarding your bankruptcy filing but most people will not be privy to this information unless they are specifically looking for it. As long as you are careful who you share this information with, you should not have to worry about everyone knowing about your bankruptcy and financial status.

Myth 3: I Will Never Get Another Line Of Credit

While debtors who have filed for bankruptcy typically find higher interest rates from credit lenders, the focus should be more on keeping new credit cards paid off and rebuilding your credit score organically.

While you will see a decrease in your credit score following your decision to file for bankruptcy, it doesn’t mean you will never have credit again–it’s called a fresh start for a reason. David S. Clark not only understands the overwhelming stress bankruptcy can bring but offers professional financial advice on how to recover

Myth 4: Filing For Bankruptcy Is Too Difficult

While it is technically possible to file for bankruptcy on your own, it is extremely difficult. Filing for bankruptcy requires time, money, paperwork, and expertise that is necessary in order to ensure the financial peace Auburn or Opelika residents seek. 

In contrast, David S. Clark is an experienced bankruptcy attorney that can do all of the work for you while offering legal aid throughout the bankruptcy filing process. 

Filing for Chapter 7 or Chapter 13 bankruptcy can seem like a daunting task, but it doesn’t have to be. David S. Clark is a bankruptcy attorney in Auburn, Alabama that can help you get the financial relief you need. Contact David S. Clark today to start your journey towards financial freedom!

DISCLAIMER: The above blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.

How to Rebuild Credit After Bankruptcy

By | Financial Tips, Personal Finance, Understanding Bankruptcy | No Comments

Unfortunately, life after bankruptcy isn’t easy. You have a fresh start, but you also have a lot of repair work to do with your credit, which has most likely taken a huge hit during the process. The good news is that any Auburn or Opelika resident has the ability to not only rebuild but fully recover from bankruptcy. 

Here are some financial tips from David S. Clark, an experienced Auburn & Opelika bankruptcy attorney, on how you can improve your credit score after filing for bankruptcy. 

DISCLAIMER: The following blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.

Need Bankruptcy Help? Call David S. Clark

Understanding Your Credit Score

The first step to rebuilding your credit is understanding what your credit score really is. In the most basic of terms, a credit score is a number that reflects your trustworthiness with lines of credit. This number is calculated using the total amount of debt owed, payment history, any and all credit history, amount of credit lines, the amount of diversity in credit, and more. 

It is important to know the state of your debt and finances so you can carefully consider any decisions you make regarding your credit. Knowing where mistakes have been made and how to avoid future mistakes can greatly help the rebuilding process after bankruptcy. 

Check Your Credit Report for Inaccuracies

Credit reporting companies, also known as credit bureaus, collect and store financial data about you that is submitted to them by creditors, such as lenders, credit card companies, and other financial companies.

Many of the major lenders provide access to this information for free in the form of credit reports. It is important to note that there are a few different major lenders, so reporting from each can vary.

After receiving your credit report, check that the items on the report are accurate. While most of the financial information will be correct, lenders can make inaccuracies that lead to unfairly low credit scores.

If you’re an Auburn or Opelika resident seeking help, David S. Clark is an experienced bankruptcy attorney that can not only walk you through your credit report but help assist you in disputing any inaccurate information. 

Apply for New Lines of Credit

An important step to take after filing for Chapter 7 or 13 bankruptcy is to apply for new lines of credit. It might be difficult to be approved for a new line of credit, and interest rates may be higher than before, but do not be discouraged!

New lines of credit can help lenders see that you are someone who is responsible for the money you borrow, despite your previous financial history. These new lines of credit can rebuild trust and confidence in your ability to repay debt. 

Be On-Time With Payments

Now that you have your new lines of credit, you will need to prove that you are responsible for them. One way to do this is to make your payments in a timely manner. This means avoiding late fees and generally paying your bills on or before their due date.

Keep Balances Low

Keeping your credit card balance low gives you a low credit utilization ratio. This ratio is an important factor to lenders when assessing your eligibility for lines of credit and especially when assessing your credit score. 

A low credit utilization ratio means that you are not using your line of credit up to its limit. This gives lenders confidence that you will not max out credit cards and be unable to pay them back. 

David S. Clark, A Local Bankruptcy Attorney

David S. Clark is an experienced bankruptcy attorney who understands the complications of life after bankruptcy. If you need help navigating Chapter 7 or 13 bankruptcy, contact David S. Clark today! 

DISCLAIMER: The above blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.