Can Credit Be Rebuild After Filing Bankruptcy  

A major deterrent the credit report of a person can have is bankruptcy. Even though some of the laws regarding bankruptcy can ensure the debtor to get rid of many dues and payments upon filing for it, yet it leaves a bad impression in his credit history for maximum ten years. Thus people filing for bankruptcy should search for any other viable option before giving in to it.

There are two chapters concerned with bankruptcy application. Chapter 7 gives provision to the debtor to liquefy his assets to clear his debts. Chapter 13 can provide debt rehabilitation if all the necessary procedures are carried out in the court. Thus, opting for Chapter 7 usually brings down the applicants credit points to around 400. Yet, that does not mean that he is not eligible to get any loan after that. In fact, he is eligible for two kinds of loans- one that is protected with a collateral form and the other which have exorbitant rate of interest.

Now, a bankrupt person’s credit report can only be revived by opting for more loans, but clearing them off diligently. Only this will enable future creditors to overlook the bankruptcy report in transactions in the years to come. However, there are certain things a person should not do in his post bankruptcy phase. He should avoid automatically paying his bills from a checking account. This can result in the bill being rejected if the account becomes overdrawn. Also, avoid taking loans with too much high interest rate as repaying would be problematic later on. Apart from affecting your credit report negatively, it will bring you to serious trouble as filing for second bankruptcy is not possible for a certain amount of time.

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Can Credit Be Rebuild After Filing Bankruptcy




Can-I-File-For-Bankruptcy-If-I-Have-Not-Filed-Taxes      Millions of people in the world take loan to make their ends meet and then are faced with debts due to unwise money management. These often lead to stressful life, getting oneself overworked and ultimately push him towards bankruptcy. At this stage, many questions dominate the person’s mind. One common thing one wonders at this stage is whether he is eligible to file for bankruptcy even if he has not filed his taxes. More..




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