Archive for the ‘Bankruptcy’ Category

Does bankruptcy affect your credit score?

Sunday, June 24th, 2012

Benefits of good credit scores, bankruptcyA good credit score is very important to avail various services during financial problems. With a good credit score you can easily get loans, mortgage amounts and also sometimes rebate in interests. Today in business money can be needed anytime and a good credit score is the ticket to loans and other money options. Sometimes when a business is in deep depth and full of financial instability it is better to file for bankruptcy and eradicate all this problems. But yes this effects the credit score of the individual person.

As soon as you file bankruptcy, your credit score will be reduced by 220 points or at least 200 points. This will affect other records too and you will face difficulty in rebuilding it. For nearly a period of seven years the bankruptcy will be shown in your financial history which can be a problem in taking loans etc. It is very important to know the process of improving credit scores if you wish to recover from the state.

How to start afresh after bankruptcy

Monday, June 11th, 2012

Start fresh after bankruptcy, bankruptcyWhen you have lenders running behind you for their money, and the credit card companies too for you to pay the bills; file bankruptcy if you do not have the funds. There is no other way to get things back on track. After bankruptcy you have to make a fresh start. If you had the bad habit of using credit cards all the time, stop that. Learn to stop spending money on things which are not a necessity to you.

You have to start earning as soon as possible, after you are bankrupt. It would be a bit tough to find a job, but do not lose hope because there are lots of opportunities out there to earn money. Starting a business is not an option because it needs capital, and nobody is going to provide you with a loan immediately after bankruptcy. Make full efforts to improve your credit history and score.