Bankruptcy is a complicated process and many people have misconceptions about it. Due to which people hold themselves back from filling bankruptcy. But in reality bankruptcy is the best debt relief option. You just need to put little a bit of extra effort so that you can understand the process of bankruptcy and take the benefits. Here we will discuss the most common myths and try to understand the facts of bankruptcy as outlined by Brian Linnekens which will underline the statement that bankruptcy is not such a tough process.
It is a difficult process
In bankruptcy there are many rules due to which it seems a difficult process. But according to Brian Linnekens with the help of proper assistance from an experienced attorney you can take the benefits of bankruptcy. The attorney you hire to file for bankruptcy has all the rules in the back of his mind and in the various books that he is going to consult over a period of time which of course will make it a cake walk for you provided you follow every advice in letter and spirit offered by your bankruptcy attorney.
Filing for bankruptcy will show that you are a bad person
Many people have an assumption that if you are filing for bankruptcy you will be shown in bad light to the world. But the fact is that by fling you are using your constitutional rights so that you can regain control over your finances.
It’s not only you who are facing financial crisis, lot of people around you going through the same situation and the reason can be any – medical emergencies, loss in business and downturns in economy due to which they cannot pay their debts on time. And under such circumstances if you are filing for bankruptcy you are securing yourself as well as your family members.
After filing for bankruptcy you will never own anything
This is the most common myth about bankruptcy, but this is completely wrong. In actual this will give everyone an opportunity for a fresh start, you can own all new properties like you have been owning before filing. For that you need to receive your discharge in bankruptcy.
Your family will be in trouble if you are filing for the bankruptcy
Many people believe that if they are filing for bankruptcy there will be a problem in the family and the family members will have to face the situation of separation or divorce. We know every family is different but the fact is completely opposite of it, once you decide to file for bankruptcy you can handle your family in a better way. Since by filing you have taken some action so that you can regain control over your finance.
Creditor will still harass you and your family even after you file for bankruptcy
After filing for the bankruptcy court orders an automatic stay so that creditors will not contact you in any way. With this stay in place creditors are not allowed to call and text you. If in any condition the creditors violate the court orders then he/ she will be penalized but there are rare chances of them to do so.
Your credits will ruin for 10 years
These are two different concepts which make the confusion. This is a fact that after filing for bankruptcy it will be visible on your credit report for 10 years, but the credit will not be damaged for the same time period. Mostly before filing for bankruptcy you damage all your credit as you are not able to pay your bills or debts on time. And after filing you start paying bills on times and slowly start rebuilding the credit. By doing this you can rebuild your credits within two to five years. And you come out clean from your bankruptcy there are chances that financial institutions will use their discretionary powers and provide you credit for the time you are looking for.
Individuals who file for bankruptcy in the court will definitely have to see a negative impact on their credit scores. If you recently filed for bankruptcy chapter7 and chapter 13 protections, it is very important for you to manage and improve your credit scores afterwards. Healing your credit scores will help you get your life back on track. According to Brian Linnekens there are several things you can do to start re-establishing your credit score after bankruptcy. Follow these expert tips and improve your credit scores in a very small period of time.
Brian Linnekens Advises to clear your credit reports of errors
One of the most important steps of managing your credit is to clear your credit reports of errors from TransUnion, Equifax, and Experian. Under the Fair Credit Reporting Act, It is your right to dispute inaccuracies. Ensure that your credit reports have correctly labeled your pre-bankruptcy debt as “included in BK”. If a debt you included in the bankruptcy is not being reported correctly, contact the credit bureau reporting the information to start a dispute and have the information corrected.
Brian Linnekens asks you to Track your finances and credit reports in a regular manner
After a bankruptcy, you must be extra vigilant about your finance and credit reports. Keep a regular eye on your finance and credit conservatively. Be cautious with spending. This is a high time when you essentially require making a budget for your expenditures. A definite budget or effective spending plan will help you to manage your cash flow. Have a budget with a line for saving, so you can deal with future emergencies and unexpected events easily. Stop racking up unnecessary debt. Keep your employment stable.
Brian Linnekens advises you to pay your current bills in a timely manner
After filing for bankruptcy in court you are required to make timely payment of your current bills and rents. Just for the reason that missed payment can hurt your credit score. Bankrupt’s payments are being tracked by the credit bureau Experian, so it is very important for a bankrupt to pay his bills in a timely manner. Repaying existing bills as agreed in court will be one of the single, most powerful things that a bankrupt can do to restore his finances and credits. It will positively affect his credit score and will help him to release his case shortly from court.
Brian Linnekens advises to apply for a new secured credit card
Give up on your unsecured credit cards and apply for a secured credit card. Secured cards are useful tools for rebuilding credit. Secured cards need a cash deposit and offer lower credit limit than unsecured cards. Take a close look at the interest rate and fees before committing to a secured card. Ensure you are keeping your spending in control and paying in full and on time each month. Doing this will help you get most benefit for your score.
Successful financial planning is not just investing, it is the key to a tension free and prosperous life. Having good financial plans and investing decisions link you to your goals and help you accumulate wealth and remain debt free throughout your life. Brian Linnekens has spent the last 10 years advising some of the most successful and wealthy families in the US. Based on his understanding and experience over the last 10 years, Mr. Linnekens shares his professional advice that has worked for his clients. His advice will help you manage and grow your money. Learn how to build, nurture and preserve money.
Brian Linnekens warns not be mastered by your wants
Steer away from Wants
The first and most important financial advice Brian Linnekens gives to accumulate wealth and remain debt free is “not to be mastered by your wants”. To be successful and live a prosperous life first, you need to learn the art of delaying gratification. Delaying your gratification will help you to keep your finances in order. Don’t be in rush to obtain all of your wants. If you have your sight on a thing that you can’t afford to buy, delay until you have sufficient money to buy it. Don’t effortlessly purchase an item on your credit card the minute you want it. Postpone the urge to buy for the time being and wait until you’ve actually saved up the money to afford that item.
Make a good use of your credit cards advices Brian Linnekens
If you want to enjoy the convenience factor or rewards of your credit cards, do not make a habit of putting all your purchase on credit cards. Use your credit cards responsibly and sparingly. Make sure all your expenses are not on your credit card. Limit the use of your credit card and a have a plan to pay the balance ASAP. Make sure you are not spending what you can’t pay back at the end of the month and try to pay your balance in full when the bill arrives. Don’t carry more cards that you can’t keep track of.
Make a budget for your all expenses
Budgets play a critical role in helping remaining debt free and keeping most of your hard-earned cash. Effective budgeting ensures that your expenses are not exceeding your income. Track your money flow. Track your expenses for a month using your smartphone, app or paper and pen and be sure to record every single purchase, no matter how small. Once you are acquainted with your expenses and your money flow, you will realize keeping track of money flow has a big impact on your financial situation. An effective budgeting will help you to make the best decision about how to allocate money.
Practice Target savings for comfortable retirement and emergencies
Practice target savings are very critical for your retirement as well as emergencies. Your savings can save you in your tough financial conditions. Set a maximum target for your savings that you could save in a particular period of time. If you keep saving over a long period of time your savings will grow steadily and be there for you when you need it. If you have savings you don’t have to face bad financial conditions and you will always remain debt free. To save a lot of money over time try to keep your recurring monthly expenses as low as possible. Try not to waste your money, make a prudent use of your money by doing budgeting.
Develop your financial plan with good investments
Investing your money is a very important part of a good financial plan that can be utilized in times of emergencies and retirement. It helps to make sure that all of your hard – earned dollars don’t vanish. The first step in developing your financial plan is to meet a financial advisor who gives you unbiased advice on investment. You will need to protect your wealth by hiring a good financial advisor like Brian Linnekens who can guide you choosing the right types of investments that fit your needs, personality, and goals.