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Filed For Bankruptcy Protection? 3 Ways To Start Rebuilding Your Credit...

You’ve filed for bankruptcy and your debts have been discharged. Your bankruptcy will remain on your credit report for the next 10 years. That doesn’t mean you have to wait 10 years to reestablish your credit.     It may seem strange but many creditors will see you as a good risk once your bankruptcy is discharged. Why? Well, creditors know that you won’t be able to file bankruptcy for another 10 years, which means they’ll be able to go after you if you fall behind on your payments. Here are three simple ways to reestablish your credit after bankruptcy. Pay Your Bills on Time If you didn’t include all your debt on your bankruptcy – such as a car or house – make those payments on time. In fact, pay them early each month. If your budget will allow, pay a little more than the minimum payment required. Not only will it look good to your creditors, it will also pay down your debt quicker. You may not know this, but a large portion of the minimum monthly payment goes towards the interest on the debt. However, when you pay more than the minimum, the extra goes directly towards paying off the principal. Apply For a Credit Card If you discharged all of your debt, you’re going to need to open a new account as soon as possible. This will allow you to reestablish your credit through timely payments on your new debt. Apply for a credit card that will allow you to make small purchases, such as a jewelry store. Once you have your new credit card, use it wisely. Purchase one small item and make your monthly payments on time. Once you’ve paid that item off, purchase another small item and pay it off with monthly payments. In most cases, your credit line will be increased once you’ve made several on time payments. That credit increase will help raise your credit score. Don’t Pass Up Secured Cards Not sure what a secured credit card is? With a secured credit card, you deposit a specific amount of money – say $300 – and the credit card company approves you for a $300 line of credit. If you don’t make your monthly payments, your $300 is used to clear the debt. However, if you continue to make timely payments, your line of credit is increased, and your credit line is changed from secured to unsecured. When that happens, you get your security deposit back. Now that you’ve filed for bankruptcy (such as professionals of bankruptcy in Edmonton), you...

Don’t Catch Yourself In Trouble: Separate Bankruptcy Myths From Facts...

Bankruptcy can be an incredibly scary road to go down. In fact, there are many stigmas associated with bankruptcy that may result in you giving bankruptcy the cold shoulder. After all, some of the things that people say about bankruptcy are rather terrifying. However, a lot of things that are said about bankruptcy aren’t actually true; they are myths. Here are five assumed facts that are actually myths regarding bankruptcy in Canada. Only financially irresponsible people file for bankruptcy.  While some Canadians do actually abuse their credit cards and other financial means, that doesn’t mean everyone does. Many people find themselves buried in debt because of being laid off from work, suffering an illness or are in the process of a divorce. Although the people with too much credit on their plates account for the majority of those who file for consumer bankruptcy, nearly 28 percent filed for bankruptcy in 2009 due to job loss and seasonal employment.  All debts are discharged when you file bankruptcy. Unfortunately, while it would be nice, it is simply not true. Not all debts are permitted to be discharged. Some debts that cannot be discharged include child support, alimony and student loans. Even debt accumulated just prior to bankruptcy filing won’t have to be paid. This is actually considered to be a form of fraud and the bankruptcy court doesn’t take it lightly. If you use a credit card, max it to its limit and immediately file bankruptcy, it will still be your responsibility as it won’t be considered in your filing. If it can be proven that this was not your intention, then it is likely that the debt can be included in the filing.  Credit is permanently ruined after filing for bankruptcy. While it will take time to get your credit back up to where you can purchase a car or obtain a mortgage, you might be surprised to receive offers in the mail for secured credit cards (sort of like pre-paid cards except they help you build your credit) after your Canadian bankruptcy has been removed from your credit. Essentially, you can get started rebuilding your credit immediately. However, if you decide to take out credit again, make sure to make your payments on time and not go overboard. Otherwise, you may find yourself in a similar situation.  Bankruptcy cures everything. The road isn’t easy and all problems won’t be solved, but filing for bankruptcy in Canada can be a good start if there aren’t any other options for you. As you can see, there are a number of bankruptcy...