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Coming Back From Personal Bankruptcy
_The Truth About Bankruptcy
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Bankruptcy is often perceived as a total showstopper when it comes to personal finances.
True, your personal credit reports can still list a personal bankruptcy decision for as long as ten years after the fact, but that doesn't mean you are completely shut out of the financial loop for years on end.
In fact, if your personal bankruptcy still left you with some assets including your home then you may be eligible for refinancing at some point.
Read on and we'll take a hard look at post personal bankruptcy refinancing.
Personal bankruptcy is one way for consumers to get a clean start. Some debts are forgiven and other arrangements are made for you to get a handle on your finances. You may be able to salvage your home, especially if you managed to keep mortgage payments current throughout your personal bankruptcy period.
After personal bankruptcy, your credit score will have taken a major hit and all three of your credit reports will soon reflect a personal bankruptcy ruling.
In many cases this information will cause lenders to automatically and immediately dismiss any request on your part for credit, including refinancing of a mortgage or other loan.
Don't be disheartened - but don't apply for credit immediately either.
Tied in with your three credit reports are your credit scores. Likely, they will have bottomed out, but at least they can't go a whole lot further!
You can get free copies of your credit reports at AnnualCreditReport.com and pay a small fee for your credit scores. Do this about one month after your personal bankruptcy filing has been finalized.
Thereafter there are several things you can do to raise your credit score:
About one year after your personal bankruptcy test the lending waters to find a lender who offers refinancing for situations such as yours.
Before applying for a loan, pull up your credit reports and obtain your credit scores. Likely, there has been some sort of improvement in your credit standing since then, but don't expect big changes. Incremental changes are good too!
Once you are satisfied with a lender and have found a loan that fits your lifestyle then you are free too apply and get a loan.
Faithfully pay off that loan and your credit score will continue to improve bit by bit.
The road back from personal bankruptcy can be long, but it is possible to get back onto your feet.
Bankruptcy is often perceived as a total showstopper when it comes to personal finances.
True, your personal credit reports can still list a personal bankruptcy decision for as long as ten years after the fact, but that doesn't mean you are completely shut out of the financial loop for years on end.
In fact, if your personal bankruptcy still left you with some assets including your home then you may be eligible for refinancing at some point.
Read on and we'll take a hard look at post personal bankruptcy refinancing.
Personal bankruptcy is one way for consumers to get a clean start. Some debts are forgiven and other arrangements are made for you to get a handle on your finances. You may be able to salvage your home, especially if you managed to keep mortgage payments current throughout your personal bankruptcy period.
After personal bankruptcy, your credit score will have taken a major hit and all three of your credit reports will soon reflect a personal bankruptcy ruling.
In many cases this information will cause lenders to automatically and immediately dismiss any request on your part for credit, including refinancing of a mortgage or other loan.
Don't be disheartened - but don't apply for credit immediately either.
Tied in with your three credit reports are your credit scores. Likely, they will have bottomed out, but at least they can't go a whole lot further!
You can get free copies of your credit reports at AnnualCreditReport.com and pay a small fee for your credit scores. Do this about one month after your personal bankruptcy filing has been finalized.
Thereafter there are several things you can do to raise your credit score:
- Continue to make your payments on time for whatever debt you still have including your mortgage.
- If you still have a credit card, continue to use that card regularly and pay it off the balance every month. Charge things that you normally pay cash for to increase credit card activity. Remember to mentally set aside those funds for your credit card bill!
- Contribute funds to a saving account to show an asset that is growing.
About one year after your personal bankruptcy test the lending waters to find a lender who offers refinancing for situations such as yours.
Before applying for a loan, pull up your credit reports and obtain your credit scores. Likely, there has been some sort of improvement in your credit standing since then, but don't expect big changes. Incremental changes are good too!
Once you are satisfied with a lender and have found a loan that fits your lifestyle then you are free too apply and get a loan.
Faithfully pay off that loan and your credit score will continue to improve bit by bit.
The road back from personal bankruptcy can be long, but it is possible to get back onto your feet.