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 your credit report for the same length of time as a bankruptcy would.
A bankruptcy will remain on your credit report for 6 years from the date that the bankruptcy is discharged.
Defaulted payments will remain your credit report 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.
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 2.
Get A Financial Report Card.
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.
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!