A. Farber & Partners Owen Sound Bankruptcy
One of the many fears that debtors face while considering bankruptcy is about their ability to procure credit in future. Licensed Insolvency Trustees (LITs) at A. Farber & Partners Bankruptcy firm in Owen Sound allay these fears with expert legal information and efficient execution of bankruptcy process.
Many debtors approaching A. Farber & Partners Owen Sound bankruptcy firm consider bankruptcy risky because it can affect their credit rating.
The point to be noted is that as a debtor, you are contemplating bankruptcy because you are unable to make regular debt payments, which means your credit score is already poor.
Filing for bankruptcy is not going to make it any worse.
Bankruptcy can Improve your Credit Rating
Your bankruptcy record will be on your credit report for 6 to 7 years after your bankruptcy discharge timing.
The discharge timing depends on several factors including whether it is your first bankruptcy.
In case of first bankruptcy, the timing of discharge is usually 9 months after process filing provided your surplus income is not more than $200 every month.
If it is your second bankruptcy, then you are likely to be discharged 24 months after bankruptcy filing only if your surplus income does not exceed $200 per month.
In case of a surplus income above $200, the discharge timing for a first bankruptcy is 21 months after filing, and 36 months after filing for a second bankruptcy.
In case of a non-automatic discharge, a court will decide your discharge timing.
After bankruptcy discharge, it is possible to rebuild a good credit rating within a period of 2 years.
In many cases, a bankruptcy will not damage, but improve, your credit rating. This is because by the time of discharge, you are cleared of all your debt.
Seek Professional Help at the Right Time
Having a professional LIT to guide you in managing your finances after a bankruptcy is one of the best ways to recover fast financially.
Experts at A. Farber & Partners Owen Sound bankruptcy firm, for example, can suggest methods to take control of your existing financial situation while starting to save for the future.
Cultivate Good Money Habits
It can be difficult to convince lenders about your repayment ability with a bankruptcy on record, and get a loan.
Still, there are ways to obtain a credit.
It is important to cultivate good money habits, and act more responsibly when you have a debt.
Such behavior can make it easy for lenders to believe you.
Making regular payments is crucial to rebuild creditor trust as well as your rating.
If you are contemplating bankruptcy, then consult with one of our A. Farber & Partners Owen Sound bankruptcy trustees first to know if bankruptcy is the only solution for you.
The first consultation is free.
Collingwood ON L9Y 1A8