Ways to restore your credit history after bankruptcy
Such a course of action, however, only makes the situation worse, since unpaid debts increased by the interest, and lenders resort to harsher measures withdrawals, such as debt repayment due wages or bank deposits, or arrest on real estate.
As a result, a paradoxical situation: because of fear isportit your credit history debtors would rather endure such conditions than to begin bankruptcy proceedings, although bankruptcy - this is the first step towards the restoration of credit history and recognition of the bankrupt may be very useful. Remember, if you are considering bankruptcy, it is likely that your credit score is bad.
Despite the fact that the bankruptcy procedure (for Chapter 7 or 13) negative impact on the credit history, ultimately bankruptcy significantly reduces the ratio of debt - incomeand eliminates most debts. Upon recognition of a bankrupt debtor can not go through this procedure again for the next 2-8 years, depending on the type of initial and subsequent bankruptcy.
These effects show potential lenders that bankruptcy is the last in a better position than one who behind a long list of long overdue debts. Therefore, at first glance, a logical decision as long as possible to delay the bankruptcy actually delays the recovery process credit history. Therefore, you should focus on recovery of loans in the shortest possible time by using bankruptcy attorneys.
Upon recognition of a large number of bankrupt companies offer credit to the debtor to acquire a credit card on a prepayment basis. Such as credit cards involve making a deposit payment, these cards are not credit but it is a good tool to build a credit history from the beginning as loans secured correspond to the sum of money which the debtor is put on deposit. Regular payments for these cards slowly but surely fix your credit history and credit rating has fallen form.
Debt should not reach more than 30% of your credit limit. Despite this advantage, be careful, because these cards usually involve extremely high interest rates.
Also, some companies do not provide their report to the credit bureaus, and thus any kind of services that you purchase from this company will not affect in a positive way on your credit history. Timely submission of information about payments made ??on time - this is an important condition for restoring credit history, so when choosing a card is your task - to carefully read the terms of the contract and ask questions as much as possible and work with companies that send their reports to the credit agencies.
Soon after you will be the first record of timely payments on a prepaid credit card, you will once again be getting offers for regular credit cards, prepaid is not secured. It is possible that these proposals are initially due to high interest rates, but as you continue to accumulate a positive credit history, the interest rate will decline. Thus, recognition of the bankrupt not only reduces the possibility of a loan as proposed interest rate increases as long as credit history is restored.
After passage of the bankruptcy procedure is necessary to closely monitor the performance in credit reports. If your credit report does not reflect that any debt was satisfied as a result of bankruptcy, you should contact all three credit bureaus. Make sure that your credit report accurately reflects the financial liabilities that were settled. Similarly, if your report leaked to debt are not familiar to you, you should immediately contact the credit reporting agencies by mail or via the Internet, to make the necessary changes, and remove incorrect information.
Under the law, Fair Credit Reporting Act (FCRA), credit institutions are required to remove an entry for bankruptcy after ten years from the date of adjudication order. Unofficial rule for credit bureaus considered deleting a record of bankruptcy under Chapter 13 after seven years.
Pretty soon after the bankruptcy and possibly get a mortgage. After the mortgage crisis information about bankruptcy or foreclosure will not put such a stigma on debtors as once. Borrower may be eligible for a loan to purchase property (FHA) within two years after the bankruptcy and three years after foreclosure.
Thus, the bankruptcy procedure - is the first step to restoring credit history. When a credit institution assesses potential customers in terms of credit risk, the candidate with a record of bankruptcy and virtually no debt looks much more attractive than a candidate without knowledge of the bankruptcy, but with a long list of overdue payments and write-offs. Analyze your old mistakes, develop a new plan their strategy and then move forward.