While many people think that it is impossible to secure new lines of credit after bankruptcy, there are methods of bankruptcy credit repair that can, over time, restore your credit to a better position than it was pre-filing. If you are in the position of holding an amount of debt that cannot be repaid, bankruptcy may be the best option. This is a legal procedure, and both legal and financial council should be sought before a final decision is made. While a declaration of bankruptcy will remain in your credit history for 10 years, it does not mean that no additional credit will be available to you for that amount of time. A credit repair company can help in the restoration of credit and securing future long and short-term loans.
Though bankruptcy and credit repair may seem mutually exclusive, there are legal protections for those who file. Familiarize yourself with the Fair Credit Reporting Act, and take advantage of the transparency this affords in access to credit reports. After declaring bankruptcy, obtain copies of your credit reports to make sure that all outstanding balances that were forgiven with the filing are listed as zero balances. Late payment history will remain, but the amount of loans previously held will not be counted against you. Making sure that your history is accurate in one of the most important steps in how to repair credit after bankruptcy.
Another option that may people do not know is available to them is settling debt apart from a bankruptcy filing. If there are credit cards with lower balances, you may be able to negotiate settlements. These settlements will allow you to pay a fraction of the payoff amount for the account to be considered paid. If this is done, some companies will allow you to keep the existing credit cards you had before filing for bankruptcy. Your account with them will likely be heavily scrutinized, so be sure that all payments going forward are paid on time, and if possible, not to carry a balance from month to month.
Secured loans, like home mortgages can often be relatively easily procured just a couple of years after bankruptcy. If you are diligent about post bankruptcy credit repair, you may be eligible for a loan with terms similar to those offered before bankruptcy. This will not only enable you to continue to live your life, but ensure that you once again begin building good credit for any future borrowing.
Enlisting the help of a good credit repair company can make after bankruptcy credit repair easier. They often clean up a client’s credit report for them, collecting all the necessary documentation and doing all the legwork to bring a report up to date. Experts may advise clients on the best lenders to deal with post bankruptcy to secure new lines of credit if the need arises.
Good bankruptcy credit repair strategies are vital in ensuring financial health after a bankruptcy filing. Whether you are thinking of filing or have in the past, contact a service provider to help sort out your finances.
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