Ohh the B word. When people think about the idea of bankruptcy they think about having their credit ruined for the next seven years.
Well I have news for you. If you have defaulted on payments to your creditors, those defaults will remain on the Trans Union and Equifax credit bureaus for the same length of time as a bankruptcy would.
A bankruptcy will remain on the Trans Union and Equifax credit reports for 6 years from the date that the bankruptcy is discharged.
Defaulted payments will remain on the Trans Union and Equifax credit reports for 6 years from the date that you settle defaulted debts or pay off defaulted debts in full.
Once discharged from bankruptcy you can qualify for a low interest mortgage to buy a home with two years of strong, positive re-established credit and a strong overall financial profile.
If you are becoming discharged from bankruptcy here is what you can do to start rebuilding your credit and finances.
1.Get your Financial Report Card from True Assess. This will tell you how a bank would grade the current state of your financial profile, reveal strengths and weaknesses and give you strong direction to work towards your financial goals.
2.Open a bank account with a bank that was not included in your bankruptcy. Make an appointment to discuss:
a.A savings plan
b.RRSP loan options. RRSP loans report to your Trans Union and Equifax credit bureaus and are a great way to re-establish credit, reduce income taxes and build retirement savings
3.Obtain a secured credit card and only use what you can afford to repay in full each and every month. Never have a balance on any credit card that exceeds 50% of your credit limit.
4.Prepare a budget and follow it.
Following these steps will start you on a path to excellent credit and strong borrowing power!