In 2017, more than 20 million Americans would have benefited from filing for a Chapter 7 bankruptcy, however, only 500,000 did. One of the fundamental reasons people didn’t take advantage of a law that was meant to protect them, is the lack of knowledge regarding this law. The other reason is the high cost of an attorney to see the matter through. But tech is disrupting the way we do things. Life before, and after, bankruptcy suddenly doesn’t seem so scary anymore. Getting your finances back in order is as simple as loading the right app. We have an app for almost every other part of our lives, so why not the road to financial recovery?
Get Your Credit Back On Track
When filing for bankruptcy, it’s important to know that it will be listed with the credit bureaus for seven years. But in these seven years, it’s important to start working towards rebuilding that credit rating. One of the fastest ways to do this, is by using an app called Debitize. Consumers can apply for a secured credit card and with the app, can set up their payments. The app pays the bill daily when your account balance is high enough to ensure that the full payment is met every month. When additional purchases are made on the card, these are settled immediately in order to keep debt low. The app affects the bureau score in a number of ways:
- It shows that the user has the willingness and ability to pay
- Score is boosted as the bill is settled well before the due date
- Total limit is not always maxed out which proves affordability
Choose A Better Approach To Financial Management
Legal professionals who deal with bankruptcy filings regularly will make quick work of the actual filing. According to legal professionals, the process allows consumers to get back on their feet a lot quicker. Considering how many Americans struggle to keep head above water, it’s surprising to learn that only 41% of consumers use a budget. Apps such as Mint and EveryDollar have been designed to take all the stress out of the budget, plus a little extra. These apps are quick to update and spending is tracked almost immediately. By linking the app to a bank account, consumers also have the chance to link their payments which they can automate once money is in the account. This means fewer forgotten bills and a better chance at recovering a decent credit score within the shortest period possible.
Know Your Rights After Filing
One of the first things to do after filing for bankruptcy is check the credit score. It’s important to know that credit bureaus are supposed to update the figures to 0, meaning that nothing is owed on those items. The bankruptcy listing usually lasts for seven years, and it’s important to ensure that it’s not on there a day longer. While Mint also has a credit score portion on it, other apps to consider include Credit Karma and Experian.
While filing for bankruptcy can slow things down financially, it does provide consumers with a clean slate to start over. Working at repairing that credit score should be top of mind.
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Working as a motoring writer gave Jacqueline Cowell the chance to put her past experience as a mechanic to good use, once she became a mother and decided to stay at home with her two young children. She now puts together pieces for a range of different motoring websites, but in her free time restores classic vehicles with her husband.