bankruptcy recovery

Hi redeemedsh

Welcome to the debt consolidation care forums.

After your bankruptcy is discharged, it is very important to check your credit report thoroughly for any errors. Your credit report should be free from any negative entries like the past debts for which the bankruptcy was filed. It should not appear in your latest credit report.

If you have hired one attorney, make sure that he does not automatically or necessarily amend the credit report! Most of the times, the credit reports contain information reflecting the debtor's true debt.

If you find any unfavorable entry in your credit report, it must be due to the communication gap between your creditors and credit bureaus. You can simply send a letter to the creditor to update the information with the credit bureaus and the credit bureau after verification will send you an updated credit report within 30 days.

There are many credit repair kits or services in the open market that remove the incorrect listings from your credit report. I suggest you to get it done by yourself only as you will most keenly do this repair in your credit report.

While you work on repairing the listings on your credit report, you may want to re-establish credit. After two years of your bankruptcy discharge, you will be eligible for a mortgage loan on terms of your payment history. Your size of the down payment and the stability of your income will be considered most important irrespective of the fact that you have filed for bankruptcy in the past.

You can rebuild your credit lines by paying all the non-discharged debts like the mortgage, car note or student loan. As said above, you should be regular in your payments. You will get one secured credit card after you file. You can use to make small purchases and make sure that you pay this bill on time.

It is not advised to apply for more than one or two credit cards. You should keep your credit accounts in good standing for as long as possible.

You should also not apply for a new loan and increase your credit limit for more than you will be able to repay at the end of the month.

Please let me know if any of your doubts have been left unanswered.

Regards
Roxette

Do banks' policies differ regarding approval of auto loans to individuals who have declared bankruptcy? My current bank rejected my application and another bank indicated I had to wait four years after my filing date.

redeemedsh

Mine was discharged in June, I am currently doing the following

1. Pull your credit report from all the bureaus.. Mine was riddled with errors
2. I am working with a credit repair firm called Lexington Law to help dispute any errors on my report.
3. Get a secured credit card. Make sure that they report to the major credit bureaus.

mmccan (at) cabq.gov

There are firms that will deal with consumers who have just come out of BK for car loans. A bank wont touch you. You'll have to go sub prime, but the rates are that bad 1-3% higher. Just do your research and shop around.

Hi mmccan

Welcome to the forums. While you are applying for a loan, the vital point that the creditors will consider is your ability to make the payments. Your potential to make regular payments can be viewed from your credit report and you will have to consider erasing the negative marks that might be visible. If the creditors can sense that you are prompt in your payments, bankruptcy will not hamper you from getting approved in a loan.

You can consider regular payments through debt consolidation program to complete your unpaid accounts and ultimately improve your credit file.

Regards
Roxette

I recommend that all that have filed bankruptcy get a copy of Stephen Snyder's book, "Credit After Bankruptcy". It will help out a lot.

Stephen also gives seminars in which you can call in and sign up for where he will give you information about how to get a car in your local area, and the reps are actual at the seminar.

Very informative.