Top 5 in Real Estate Network® Members are dedicated to providing you with the most up-to-date, helpful real estate information. This monthly newsletter, "Real Estate Matters," offers articles on a range of topics that will inform you in your real estate pursuits.

From Our Team: 10 Tips to Rebuilding After a Bankruptcy

10 Tips to Rebuilding After a Bankruptcy
As a rule of thumb, bankruptcy is the least desirable option available to you when your finances have gotten out of control. However, if your financial situation has been going downhill for an extended period of time, your credit standing is probably so bad that filing for bankruptcy really won’t do much to make it worse, with one exception: A bankruptcy remains on your credit report for 10 long years. With this in mind, creditors will know that once you file bankruptcy, you cannot do so again for seven years.
As a member of the Top 5 in Real Estate Network®, I, along with my team, am well versed in some of the ways you—or someone you know—can start to rebuild your financial life after bankruptcy. Here are 10 tips from consumer credit experts ApprovalGuard.com:
1. Plan your credit recovery. Take it slow and easy, do it right and don’t exceed what you can afford.

2. Learn more about how credit works
through the Internet, counseling services or a service. Do it right and know what you’re doing.

3. If your credit report contains inaccuracies about debt that was discharged through your bankruptcy, contact the creditor or the credit bureaus to request a correction.

4. If you didn’t have enough savings to survive a setback, get serious about savings for an emergency fund. In the current economy you need at least 12-16 months.

5. If your problem was overspending, create a written budget and stick to it.

6. If your problem was related to medical bills, seek out a solution for insurance.

7. To re-establish a strong credit profile, you need a good history of payments from credit cards and installment debt such as autos, student loans or a home loan.

8. The rebuilding process requires you to use credit responsibly.
Use only a small portion (30% or less) of your available credit line and ensure you make a payment every month.

9. When you start to re-establish your credit, consider a “secure” credit card. Such cards are usually backed by your savings account or money you place in escrow to cover 100% of your credit line in case you don’t pay your payment.

10. You may be able to apply for a home loan
in as little as two years after the discharge of your bankruptcy, however, expect to pay higher fees and interest rates.

Copyright© 2017 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission.




Office:
Mobile:


RISMedia Real Estate News

* This monthly newsletter is brought to you by your Top 5 in Real Estate Network® Member Agent and is intended as educational information only.

RISMedia's Top 5 Real Estate Network® is a network created by, for, and of "leading real estate professionals" who are dedicated to providing "leading real estate information to consumers." The RISMedia Top 5 in Real Estate Network is backed by the commitment and resources of RISMedia. Top 5 was created to fill a profound void in how high-impact consumer relevant information was presented by leading real estate industry members to increasingly sophisticated, discerning, and demanding consumers, in order to both sustain and elevate the ongoing viability and appeal of the industry's leading professionals. For more information, visit manage.top5inrealestate.com