Reconstructing Your Finances Before and After Bankruptcy

18 December, 2013

Reconstructing Your Finances Before And After Bankruptcy

Bankruptcy is something that could happen to anybody. One of the
causes of bankruptcy is carelessness in our finances. There are
times when we do not follow our budget. We try to accommodate
unnecessary expenses just to finance our lifestyle and buy what
we want not what we need. In view of this, our expenses will
have the tendency to get bigger unexpectedly. And surely it will
have a great effect to our financial capability.

Many years ago, any person would be heavily penalized or
sometimes a harsh jail sentence if he could pay his debts. At
present, you are still given a chance to reestablish your
credibility as a borrower. Remember, you are not the first
person to have debts and at the same time not the last. To be
bankrupt is indeed a lesson we could learn from because there is
no such thing as a mistake that’s done twice.

To make a fast recovery from bankruptcy, you need to consult
your lawyer. Tell him about your financial situation and what
really happened. Be open to him regarding your credit and the
list of your creditors. You could also make use the services of
a credit counselor for a comprehensive assessment of your

There are creditors who are willing to offer credit in order to
help people regain their financial status in life. They offer
credit, loans and mortgages. For them bankruptcy is not only due
to a person’s unreliability. We can not deny the fact that
healthcare and education payments are very expensive. Hence, we
should thank these creditors who will still trust and believe in

In order to regain what was lost from bankruptcy, we need to
have the following two reminders.

1. That there is no such thing as forever in credit, secure and
use a credit in order to reconstruct your credit status.

2. There are no mistakes but lessons to learn, examine and
evaluate your credit report, be sure to have a credit card that
is protected, apply for an installment loan, be a member of a
credit union.

For our purpose of discussion, let us focus our attention on
having a credit card that is protected. There are two kinds of
credit so as to reconstruct our credit score.

1. Installment basis like for example auto loans, student loans
and mortgages.

2. Revolving credit which includes home equity lines of credit
and credit cards.

Let us discuss the installment type of credit. Among the loans
mentioned, the easiest way to obtain is a mortgage loan. There
are some people who do not consider a mortgage loan as the
answer to their bankruptcy. However, there are a lot of people
who were able to avail of the loan even one day after
bankruptcy. Although it will take us about twelve months of
waiting, at least we will be able to get a mortgage loan. Be
ready to accept unfavorable terms which will be advantageous to
the creditor.

Here are some tips in order to have a quick credit recovery and
the desired mortgage after bankruptcy services.

· Be faithful in the payment of your home and cars which were
discharged in the bankruptcy.

· Put some limits in your debts like the bank loans and credit

· Give the necessary documents to your loan consultant.

· You should not be frustrated if your loan application was not
approved. Just be patient.

There are other alternatives that can help you build your credit
after bankruptcy. Be sure to consider the many resources online
to help you get your financial life back in order.

About the author:

Dean Shainin offers online Bankruptcy”>http://bankruptcy.deans-knowledgebase.com
target=_blank>Bankruptcy and debt advice. For more
information, articles, news, tools and valuable resources on
bankruptcy and debt solutions, visit this site: Bankruptcy”>http://bankruptcy.deans-knowledgebase.com

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