Tips for an Easy Recovery After Bankruptcy Chapter 7
If you’re considering filing bankruptcy chapter 7, you might be wondering if this will be the end of your financial future. Actually, filing bankruptcy chapter 7 is not the end, and even if it takes some time to be removed from your credit report, it can be an opportunity for a fresh new start.
Bankruptcy is not the end of the world, nor the end of your financial futureMany people survive on credit these days, living on credit cards, living in houses and possessing cars they bought on credit. Others have businesses that rely on revolving credit. For people whose lifestyle depends on having credit and a good credit score, filing bankruptcy can seem catastrophic. For some people, filing bankruptcy 7 can be the only solution for their financial problems and an excellent opportunity for a new start.
How long does it take to recover from a Chapter 7?Usually, it takes three to six months to complete a Chapter 7 bankruptcy and obtain a discharge. It can take longer if you have a complicated case or some of your creditors object to your discharge. In most cases, you can complete your case quickly, have a fresh new start and begin rebuilding your credit right away.
What can be done to ease and speed up the process?Nothing prohibits you to start a new business after bankruptcy chapter 7, so you can take action without the worry of your future earnings being seized. It is essential to learn from your prior financial problems and apply some of that knowledge in your new business.
You need to be aware that if you start a new business soon after your bankruptcy, it might be difficult finding financing and suppliers. Chapter 7 remains on your credit report for ten years. You can apply for credit in less time paying higher interest rates on your loan.
If you filed for Chapter 7 bankruptcy, it is wise to consult with a qualified bankruptcy lawyer before you begin your new business.
Here are some tips to help with your fresh start after bankruptcy chapter 7
1. Start a new business that requires little capital. If you don*t need financing, your chapter 7 has no impact on your new business. There are a few home-based businesses that you can start with little financial investment like housecleaning, landscaping services or a different type of online services.
2. Write a comprehensive business plan. You can find a variety of resources and inspiration for new business owners and also you can ask the help of a successful business owner you trust.
3. Ask family or friends for loans to get necessary funding, ask someone you trust with good credit to co-sign for a loan or try to find funding on the internet, presenting your business ideas.
4. Find ways to advertise your new business online and with fliers for free.
5. Obtain the necessary permits for your business. You can request an Employer Identification Number from the Internal Revenue Service even if you filed bankruptcy chapter 7.
6. Use carefully and judiciously any new credit you receive and make sure that you are paying all of your bills on time.
Learn from your mistakes and do not repeat themIf you start a new business after bankruptcy chapter 7, it is essential to learn from the mistakes that made you declare bankruptcy, to identify what led you to bankruptcy to help prevent future financial issues and have a successful new business.