By Martin Rogers

Here, at Personal Bankruptcy Avoidance, we have been trying to teach people what they should do before making a decision to file for bankruptcy. We have made emphasis numerous times of the harsh consequences that bankruptcy will bring to a person's financial life. We have also called bankruptcy a “last-resort method”; meaning, people should always think twice before making such tough decisions; because once you file for bankruptcy, all your financial life will be seriously affected.

The California bankruptcy system offers some legal and financial aids that are for the sole purpose to be used by those who file for bankruptcy. Today we want to offer a way out for those people that have already made that one last decision and have filed for bankruptcy by explaining a little bit about overdraft agreements, and how they can help someone improve their situation.

One of our clients, Caitlin Stewart, has recently filed for personal bankruptcy, and she just joined our program in order to recover her financial stability and regain her credit capacity. Martin Rogers, our California bankruptcy expert, will surely help her with any questions she has.

Caitlin Stewart What are overdraft agreements? And Am I allowed by the California bankruptcy law to use it?

Martin Rogers: According to the California bankruptcy laws, people who have filed for bankruptcy are allowed to make use of revolving credit accounts that have a direct relation with their bank account. These are called overdraft agreements. These accounts have a limited credit and within that amount you, as the owner of the account, can make withdrawals even if you do not have enough money in the account. An important point about these accounts is that after the owner has withdrawn money, he or she has to pay the generated capital and interest. People have to be very careful about fulfilling the mandatory payments and above all, always pay the interest charges. Maintaining a healthy financial relationship with this type of account will be vital to recover your credit history.

Caitlin Stewart Will using this type of account surely help me?

Martin Rogers: The California bankruptcy laws have created this type of mechanism to help people in certain and specific situations, such as bankruptcy. The most important thing to do after surviving bankruptcy is to recover your credit score by paying on time the capital and interest charges, which credit bureaus will into your account’s behavior; and they will eventually promote the growth of your credit score. The California bankruptcy system is intended to promote the development of these specific bankruptcy cases, where people can show that they can lead a debt free life whilst fulfilling all of their financial responsibilities.

Caitlin Stewart According to the California bankruptcy system how do I improve my credit capacity beyond that point?

Martin Rogers: The California bankruptcy system allows people who have a constant growth on their credit reports to equally grow on credit capacity. After the credit picks up over the normal limit by using overdraft agreements, the person can apply for credit cards in order to increase the actual credit score. Another interesting way of increasing your credit score is requesting a small unsecured loan to make acquisitions or to buy small things. Repaying these kinds of loans will add up more to your credit history, and you will ultimately gain once again the serenity of being out of debt and having a balanced financial life. In time, you will regain your normal financial life, and you will be able to use any bank or credit resource as you could in the past. The main difference is that this time, you will know how to manage it better and avoid debt successfully.

To file for bankruptcy in the California Bankruptcy system, you need the best legal advice possible. Choosing the wrong attorney could cost you your home, vehicles, or other possessions. The decision is too important to trust it to the yellow pages or slick TV commercials.

Choose California bankruptcy well established, well respected and highly skilled attorneys from law firms that deal exclusively with consumer bankruptcy.

By using our free confidential legal evaluation, you can be on your way to achieve the financial solutions you seek. We can help you protect your assets and get the fresh start you deserve.