How to Survive Bankruptcy and Build Your Credit

I opened my business in February 2001 with my wife. I applied for a loan through the Small Business Association and was approved for a guarantee. During the course of the business, I opened lines of credit with Fleet Bank and Capital One, as well as applied for an emergency loan through Elc Loans.

StarsDVD, LLC was the first all DVD rental store in Connecticut. Everything was going fine until I got divorced. The business suddenly went from a two-person job to a solo gig.

I was working about 80 hours a week and going to school full-time. I made some mistakes here and there, like forgetting to include my salary in the business plan. Money started shrinking from the bank account and the debt started piling up.

Despite filing for a Limited Liability Corporation, the debt was mostly under my name. Creditors often insisted on a waiver or personal guarantee to establish credit.

In 2003 I was faced with a decision to get another loan or close shop. The DVD market had changed in those two years and the future for the format did not look that promising. I chose to close the doors to StarsDVD, LLC. By that time I was almost a quarter-million dollars in debt and I was still a few years before my thirtieth birthday.

I had no choice; it was either a life of indentured servitude or a run through the bankruptcy courts. I got myself a lawyer and was whisked through the whole process rather painlessly. The funny thing is that lawyers want their money before they start the paperwork so I had to borrow that from friends and family to get the ball rolling.

Filing for bankruptcy was by far the smartest financial move I ever made. Credit card companies paint a grim picture of bankruptcy and the years of toiling it will take to get out of that mess. I’m not advocating bankruptcy; everyone shouldn’t use it. However, if you do file, you are now stuck with the monumental task of building credit from scratch.

Here are my five tips for surviving bankruptcy and building credit:

1) The first thing you need to do is ensure you have an active checking AND savings account. If you don’t have a debit card you should then apply for one immediately. Having a debit card will solve your immediate problems such as buying airline tickets or renting a car. True you have to have the money in your account but the MasterCard or Visa logo on the debit card can be a godsend in the future.

2) Second thing is to get a secured credit card with a Visa or MasterCard logo. You will find that you are getting credit card offers in the mail. Read these carefully because they are designed to take advantage of people with bad credit. You need to get a secured credit card. These cards will offer very little available credit after all the fees have been applied. You need to max out this card and then pay the minimum payment for a while. This establishes a new credit history.

3) Don’t ever miss a payment again. This is imperative as it takes two years for a missed payment to leave your credit statement. Beg and borrow for the money to make the minimum, don’t miss a payment. Missing a payment after filing bankruptcy essentially will reset your credit rating back to a new low. Don’t let this happen.

4) Monitor your credit on a monthly basis. TransUnion, Equifax, and Experian all have plans where you can get monthly reports on your credit. You can get one free report a year but trust me you want the monthly reports. When you get these reports you need to go over them with a fine-toothed comb. Anything that does not look correct needs to be disputed. These credit reporting sites have an online dispute form you can file. Remember you are on the ropes now and fighting for your credit life. Every little error counts.

5) Don’t get discouraged. This last step may seem cheesy but you will still have creditors calling you. It will be difficult knowing you can’t even walk into Target or Sears and get a $300 line of credit. There is a light at the end of the tunnel but it takes years to get there. Staying positive and looking at the big picture is super important.

Filing for bankruptcy is a life-changing event but there can be life after bankruptcy. The whole credit business is based on fear. These multi-billion dollar credit companies give credit out like candy and they specifically target younger audiences in school.

By the time you graduate you may have tens of thousands of dollars in student loans and several thousands of dollars in credit card bills. Then you have to get a car and a job to pay those bills.

Before you know it you have to work years and years to pay off the debt you incurred in school. It can become a never-ending circle of debt and repayment. This is how credit card companies get their money.

Use your credit wisely and always keep an eye on your credit reports.

How To Handle A Lost Cashier’s Check

Are you the one who purchased the cashier’s check but lost it? If yes then don’t worry until we are here. In the details declared below, we will declare about the details which will help in let you handle this situation. The primary and most important thing to do when the check get lost is to report at the bank about the situation. It is must for you to declare the loss statement. It will make the bank to verify that the check is being lost and cannot be found. This will save you from any further fraudulent activities can be done via the check.

What Is A Cashier’s Check?

Cashier’s check is the best and safest way to receive payments from the businessman. Today, taking money in bags and pockets is not safe because of theft and many criminal cases. With the help of the check one can claim the amount without any hassle. From the checking account of any business or an individual, one can purchase this check by using money. This check will get deposited into the bank and then the check will get change in its name. This will make the cashier’s check get converted into the personal checks.

Now it comes to, what will happen if this check will get lost? If this happens then don’t get panic because we have some remedies for this also do just use them and save you with that.

What Happens If The Check Will Get Lost?

If you will loss a cashier’s check, the bank wants you to get an indemnity bond for the amount of the lost check. Before he will issue the new one, the indemnity bond is necessary to be made. Make sure to be forewarned does matter you have already presented the indemnity bond or not. You need to wait for at least 30 to 90 days to replace the check.

In Case, If The Check Is Not Cashed?

If the receiver did not get the cash from the check, the money will be of the bank. If you will not go for the proper procedure the check will not get cashed. The written normal check will not work at all and will not let the money get converted into cash. It will just stay in the account.

Payments Of Cashier’s Check Can Stop Or Not

The payment of cashier’s check cannot be stopped. If in case you want it then you can let the bank know about the situation. When the bank will get to know about the situation, they will flag it which will put it on hold and deal with it whenever it comes out.   

What To Do When Check Being Lost?

In case, if you will lose the check then doesn’t worry. The primary and immediate thing one should do is to call the issued bank and tell them that what happened with the check. When bank will get to know about it, they will automatically raise the flag and will hold the payment in the account. This will help in stopping the payment and will save the amount.

Verification Of The Check’s Reality

If you will get confused or you want to identify that the check is real or not then don’t worry because with the help of the verification, one can find out the reality. Just check what is the number of bank mentioned of on the check. When you will get to know about the number mentioned on the check, hand to hand, inform the bank about it. The bank will go through the process and will collect the details to let you know about its reality.

Can Anyone Cancel The Cashier’s Check After Being Deposited?

The cashier’s check usually takes few business days to clear out the check and convert it into cash. If in case, the cash is not cleared then one can stop the payment by informing to the bank about it.

How Much Time The Cashier’s Checks Take To Get Cleared?

So you want the cashier’s check to get converted into cash. If you want this, then you have to wait for few days. After depositing the cash, you will get the notification of the amount entered in the account but the problem is you cannot withdraw it. Until the bank clears the deposit, the amount cannot be taken from the bank. But the funds which needed to transfer in the accounts will get available in a business day.Final Verdict

Hope that you are satisfied with the above information and now you got to know about how you can handle the lost cashier’s check and the other important things about clearing it so that when it comes to you, you will be able to handle the situation properly.