Life after Bankruptcy . . . Do I Have One?
Bankruptcy may seem like the end of the world for many but it is meant to be the start of a new beginning. In many cases to get the so called "fresh start" you'll need to go through some necessary steps.
At some point after the completion of your bankruptcy proceedings you will one day want to get a loan or refinance current debts. With the valuable lessons learned from the past,
this should make you financially weary. We will go over the steps you'll need to take to get back on track, if you are planning to refinance or obtain a loan after bankruptcy.
Many people go into debt and have no problem paying their bills. Some allow their debt to grow to the point where the debt ruins them financially. While having debt can ruin you financially and is quite unsettling for most, it is definitely not the end of the world. After everything has settled, and the former creditors are satisfied, here comes that "fresh start". This is when refinancing after bankruptcy comes into play. It takes time to rebuild yourself after bankruptcy, in most states bankruptcy can reported on your credit report for up to 10 years, but within the first year or two you should begin seeing signs of relief if you take the necessary steps and make wise financial choices post bankruptcy.
If after bankruptcy you have been re-establishing yourself and can show a strong pay history then it is more likely you will be successful with getting a new line of credit. Late payments on bills are not a good sign to creditors especially after bankruptcy. Make sure you pay your bills on time and have good repay history to show. Paying your bills on time can be as simple as not living above your means and limiting yourself to only one credit card for emergency funds purposes only. Showing good credit history after bankruptcy is imperative and being responsible with your credit can show the banks a positive side of you.
Other than rebuilding your credit history you will also be tasked with removing any erroneous information found on your credit report. This mean you will need to continually obtain a copy of your credit report from the 3 major credit bureaus. Removing erroneous information from your credit report is not an easy chore, as credit bureaus are slow to do this, it is necessary to wipe out the lists that may be on your record of collections performed against you. Make sure to file disputes and follow through on anything that is not correct on your credit report. This will help you with refinancing and obtaining loans after bankruptcy by raising your credit score.
One more thing that may help after bankruptcy is the "loan to" value or LTV of your property, usually a house. A loan is given using this process primarily by adding up the cash value of your property. You can get a loan this way and pay off any outstanding taxes that have remained after your bankruptcy. Tax liens against your property will usually last until they are paid, even if you have successfully undergone bankruptcy.
There are loan officers and mortgage lenders that specialize in loans and refinancing for post bankruptcy creditors who can help you. Once you learn what to expect when you attempt to get a loan or refinance after bankruptcy, you will be back into the normal swing of things in no time. All it takes is a little knowledge and time to correct the errors of the past, and you will be enjoying that "fresh start" that you have been looking for.
