Whether you filed for chapter 7 or chapter 13, if you have been declared as bankrupt, you must be deeply concerned about rebuilding your credit after bankruptcy. The following tips will prove to be very helpful in this regard. Some people are so much frustrated with the bad experience that they lose all hopes of having a good financial life again. However, this is not the case. You must be a positive thinker. Bankruptcy is not the end of life – you should take it as a new beginning. If you follow the right approach, credit rebuilding is very much possible even after you have gone bankrupt. In order to achieve your goals, you do not needlessly need to talk to your bankruptcy lawyer. All you need to do is to structure your personal finances in the best possible way. Following is a brief rundown on the same.
It's A Bit Difficult But Possible
Although a bit difficult, but it is still very much possible to get credit after bankruptcy. For example, a little research can easily help you find a financial institution that will be more than willing to refinance your home. You need not be disappointed if your own bank rejects your loan applications. You can try contacting some mortgage brokers in that case who may be interested in helping you with the kind of financial situation you are in.
Be Well Aware Of Your FICO Score
You can substantively improve your chances of getting credit after bankruptcy by having a true picture of your current credit score. Therefore, you are strongly recommended to get a free copy from each of the three major credit bureaus, including TransUnion, Experian and Equifax. Check all the details in the report thoroughly in order to make sure that the information included there is relevant and correct to the best of your knowledge. If you find some errors, get it corrected as soon as you possibly can. In order to get the corrections, you may be asked to provide to some financial documents, such as bank statements, bills, receipts of debt payment, and other such details in support of your claims. With that said, you should never forget to obtain proof of payment for the bills you pay. You must keep these documents safely, as you may need it anytime at a later stage.
Even if a particular lender rejects your applications for credit after bankruptcy, you should still ask them some simple questions, such as the reason of rejection and what would they have done if they had faced such a situation. Their answers will help you make an informed decision. Just remember, you have to listen to everyone, but you must act according to your own mind.