Rebuilding Credit After Bankruptcy

The reconstruction of a credit
Because much of your debt is likely to be wiped out after bankruptcy, it is an ideal time to start building savings.

By Manuel Tovar, November 08 – Hispanic Solutions Group

Each year, you are entitled to a free copy of your credit report from each of the three major credit reporting institutions: Equifax, Experian and TransUnion. Take advantage of this and regularly examine your reports for errors or missing information. If you find any inaccuracies, such as a delinquent account that does not belong to you, you can report it to the appropriate credit reporting agency. When the negative mark is removed, your credit score is likely to go up. Inaccurate information on your credit reports can cause a low credit score.

How to start?-. Many credit card companies also give you regular updates on your credit score to monitor. Think twice before working with credit repair agencies. Instead of paying a credit repair agency, consider using that money to increase your emergency fund and savings. Focus your efforts on the habits and circumstances that led to bankruptcy and how you can change them.

Because it is important?-. Credit repair agencies take the heavy lifting of building credit, but they charge fees. If you’re willing to work to check your credit reports for errors, you can save that money and use it to continue paying off your existing debts. Take a look at your budget and request copies of your credit report yourself before looking for credit repair agencies.

A bankruptcy remainson your credit report for 10 years. However, former bankruptcy attorney Kevin Chern says that when a person files for Chapter 7 liquidation bankruptcy, the debtor immediately and drastically reduces their debt-to-income ratio, which could set the stage for a credit score in hike in a year or two. It also removes your ability to qualify for Chapter 7 for another eight says Kevin Chern,

How long does it take to rebuild credit after Chapter 13?

Specialist Kevin Chern also says that most Chapter 13 applicants will see a reduction in the debt-to-income ratio, but this won’t happen as quickly. After three to five years of living on a strict budget, Chapter 13 debtors should be much more equipped to manage their money that way. In many cases, after 18 months of regular Chapter 13 payments, a debtor can refinance with a Chapter 13, especially if the debtor has any equity in a

Can You Get Credit After Bankruptcy?It’s the question: Although it may be more difficult to find a lender willing to offer you a competitive product, there are still ways to get credit after bankruptcy. Some types of credit you may receive include:

  • Auto financing.
  • Conventional mortgage.
  • FHA insured mortgage.

Because much of your debt is likely to be wiped out after bankruptcy, it is an ideal time to start building savings. By putting a portion of your income into a savings account or cutting down on subscription services or nonessential memberships, you avoid having to apply for loans, which could potentially go back into debt if you can’t keep up with the high interest rates that come with bad credit.

If you have any questions related to finances, credits and other related topics, but do not know who to turn to, contact us by going to Hispanic Solutions Group, writing to info@hispanicsolutionsgroup.com, by calling 612-216-1599 or accessing financial information on YouTube, The credit channel, Our specialists in charge of Mrs. Jessica Aliaga will be informing you of any concerns about this and other financial matters of general interest and guidance as in this topic, today we bring you the following report so that you can make your most important economic decisions , also him We invite you to follow our social networks: LinkendIn, Facebook, Twitter and Instagram.