3 Things to Know About Bankruptcy & How to Deal with It

Have you been forced to declare bankruptcy in the past? If you are worried about how it may affect your future, don’t be. There are methods that you can use to speed up your full financial recovery. It will be up to you to make use of these tactics in order to give yourself a new start. 3 of the very best of them can be listed below.

1. You’ll Need to Restore Your Credit

One of the first things that you should know is that filing for bankruptcy doesn’t mean you’ll never be financially independent again. But it will be up to you to take all of the necessary steps to restore your credit. This will be the first and most important thing that you need to do in order to qualify for a loan in the future.

You can start by getting a secured credit card. You can use it to restore your rating by making all of your payments on time. After you have proven yourself to be a good credit risk, you can get a regular non-secured card. This will go a long way toward showing that you have recovered from your bankruptcy and are safe to loan to again.

You should also take note of the fact that bankruptcy does have an immediate negative effect on your credit rating. It may be hard to get a loan for a new home or car just after your bankruptcy. However, with time and responsible handling of your available credit options, the hit that you took to your score will slowly diminish.

2. You May Need to Hire a Financial Advisor

One of the best things that you can do in a situation like yours will be to hire the services of a professional financial advisor. This is the person who can give you the aid and counsel that you need to work your way back to financial independence.

Your advisor can work with you to develop a plan for paying back all of your creditors and settling all of your other outstanding expenses. They can then help you to work on repairing your credit score. The time to hire this valuable ally is now.

3. You May Qualify for a VA Loan

If you are having trouble finding a lender for a new home, don’t panic. Even if you have had to go through the process of bankruptcy, help may be available. There are a number of steps that you can take to get the loan you need to secure your new home. One of them may be to apply for a VA loan after bankruptcy.

This is a step that you can take only if you first meet certain requirements. According to the official guidelines established by the VA, you have to wait a full 2 years since the discharge date of a Chapter 7 bankruptcy. This means the date that you were officially released from bankruptcy, not the date that you or your spouse filed.

You will also need to furnish the VA with a full explanation of how, when, and why you were forced to go into your bankruptcy. Since that time, you will need to show proof that your credit has been restored to an acceptable level. This is a step that is intended to safeguard the VA against the consequences of issuing a further bad loan.

Other steps that you will need to take include qualifying for the loan through a number of official steps. These will be explained to you by the VA representative that handles your case. You will also need to prove that you have been gainfully employed for a certain length of time. Other steps may be required as the case may dictate.

The Time for You to Recover is Now

There is no time like the present to begin your financial recovery. Even if you are forced to file for bankruptcy, this is not the end of the road. There are many steps that you can take to get back on the road to financial independence. The time for you to take advantage of these many handy methods to aid in your full recovery is now.


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