Bank finance articles and tips

Facing bankruptcy, a common worry is that it will be nearly impossible to re-establish credit after bankruptcy. Contrary to what many people believe, your credit score can recover and rise again after a bankruptcy. Furthermore, a bankruptcy will not stay on a person's credit report or affect their credit forever. A chapter 13 bankruptcy stays on a person's credit report for 7 years, while a chapter 7 bankruptcy stays on the report for 10 years after filing. While this may seem like a very long time, it is worthwhile to remember that in determining one's credit score, new information is weighted more heavily than older information. In other words, two or three years of regular, monthly payments on a credit card without ever being late, can cause a person's credit score to rise despite a past bankruptcy filing.

It's no secret that declaring bankruptcy certainly gave you control over your finances - and you're certainly eager not to end up back in the bankruptcy courts again. But thanks to a combination of the shrinking job market and the rising cost of living, you're worried that you'll end up right where you started: filing a petition in a bankruptcy court.

Even if you've got your bills under control now, it's always important to use the recession as an opportunity to make sure that your financial education is on the right track - especially if you're trying to avoid bankruptcy again.

Reserve struggles to create a plan to spur borrowing, bankruptcy debtors still have the opportunity to borrow money to buy homes. Let's take a look at how bankruptcy debtors can get a mortgage during or after bankruptcy:

After Chapter 7 Bankruptcy

A debtor is often able to obtain a subprime mortgage less than a year after their bankruptcy discharge. However, if they are willing to wait an additional two years they can often get prime mortgage rates or at least close to prime. FHA mortgages are available to Chapter 7 debtors two years after bankruptcy, while conventional loans are accessible after four years. If a Chapter 7 debtor has done an exceptional job in rebuilding their credit, they may be able to get a conventional loan only 3 years after their bankruptcy discharge. Three years is enough time to save a sizeable down payment and build the type of credit rating that can bring interest rates down significantly.

The need for after bankruptcy car loans is greater now than ever. With today's economy and the current job market, for many a bankruptcy is the only way to get out from under too much debt. However, this sometimes can mean losing your car through the bankruptcy process.

If you are someone that has found yourself in this situation, the following steps to get pre-approved for after bankruptcy car loans could be key to getting your feet back on the ground as well as a new vehicle.....

Declaring a Chapter 7 or Chapter 13 bankruptcy is a great financial option for those struggling with crippling debt - but there may be a few questions that you're asking yourself: what exactly happens to your credit score when you declare bankruptcy? How will your credit be affected once your bankruptcy is confirmed? What should you do in order to take advantage of the second chance that bankruptcy gives you?

Luckily, the Fair Credit Reporting Act (FCRA) is there to help curious consumers to shift through any credit confusion. Passed in 1970, the Fair Credit Reporting Act is a law enforced by the Federal Trade Commission that protects the basic rights of credit consumers in the United States. While the FCRA was established to put an end to extreme harassment from creditors and debt collectors, this act also allows consumers to receive one free credit report per year in order to check for any reporting errors that may cause a person's credit score to be lower than usual.

Declaring personal bankruptcy is one of the smartest financial moves that you can make after struggling with crippling debt. Your credit score has long been suffering thanks to your battle with debt - and a Chapter 7 or Chapter 13 bankruptcy can put an end to that battle.

However, what about your credit after a personal bankruptcy? With so many financial experts claiming different "facts" about what happens to your credit - and what you should and shouldn't do about it - it can cause much confusion for those looking to take advantage of the second chance that bankruptcy affords. After all, there are many questions that need answers: should you forgo having credit after declaring bankruptcy? Should you stick to a "cash only" lifestyle?