With the global economy in a sore spot, many people in Canada and
beyond are finding it difficult to get out from crushing debts and even
getting a mortgage after bankruptcy in Canada.
More and more Canadians are finding that their only choice is to
declare bankruptcy, which at the very least offers some relief. The
drawback is that credit is destroyed, making it difficult to obtain the
funding needed for larger items such as cars or a mortgage.
Fortunately, there are a series of steps that one can take to recover
from bankruptcy in Canada after filing for Chapter 11, though it does
of course take some time and effort.
After declaring bankruptcy in Canada, a person will receive their
discharge after a period of nine months. After this, the first step
that should be taken is to focus on rebuilding credit. To do this, one
needs to save a relatively small lump sum of money that can be used as
a base. Save-up about $500-$1000 dollars, and then deposit it in a
Closed GIC account for 1 or 2 years. Then apply for a secured Credit
Card against this GIC account, for the same amount of money.
This is a two-year plan. In the first year, it's recommended to use as much as you can repay on the visa within three months. For instance, withdraw $1000 for your estimated living expenses, such as food, gas, or other daily expenses. Then, pay this off in three lump sums of $333.34. Repeat this step four times throughout the year, which will then give you a clean bill of credit repayment for a whole year. With this new clean record, take the next step of applying for a car loan or a Credit Card increase, which will allow you to continue payments for a second year, thereby giving yourself a solid two years of credit repair.
With these two years of credit repair that you have just undertaken, you will now be eligible to apply for credit cards, loans, mortgages, or anything else that you may need to obtain after bankruptcy in Canada. After seven years, the bankruptcy vanishes from a person's credit report entirely, allowing the entire transitional process to be completed. This comes as a great relief for those suffering from bankruptcy, thinking that they would never be able to take out a loan again. There is hope, by following a few simple steps to help rebuild fallen credit.
Furthermore, a mortgage professional can help clients purchase a home right after bankruptcy, once discharged. They can apply for a mortgage at a 1-3 year term which will of course be at a higher rate but help them move into a home sooner than later. Once the rebuilding of the credit has taken place, a mortgage professional would refinance you through an AAA lender (RBC, CIBC, BMO etc) with the lowest rate in the market.
This is a two-year plan. In the first year, it's recommended to use as much as you can repay on the visa within three months. For instance, withdraw $1000 for your estimated living expenses, such as food, gas, or other daily expenses. Then, pay this off in three lump sums of $333.34. Repeat this step four times throughout the year, which will then give you a clean bill of credit repayment for a whole year. With this new clean record, take the next step of applying for a car loan or a Credit Card increase, which will allow you to continue payments for a second year, thereby giving yourself a solid two years of credit repair.
With these two years of credit repair that you have just undertaken, you will now be eligible to apply for credit cards, loans, mortgages, or anything else that you may need to obtain after bankruptcy in Canada. After seven years, the bankruptcy vanishes from a person's credit report entirely, allowing the entire transitional process to be completed. This comes as a great relief for those suffering from bankruptcy, thinking that they would never be able to take out a loan again. There is hope, by following a few simple steps to help rebuild fallen credit.
Furthermore, a mortgage professional can help clients purchase a home right after bankruptcy, once discharged. They can apply for a mortgage at a 1-3 year term which will of course be at a higher rate but help them move into a home sooner than later. Once the rebuilding of the credit has taken place, a mortgage professional would refinance you through an AAA lender (RBC, CIBC, BMO etc) with the lowest rate in the market.
The drawback is that credit is destroyed, making it difficult to obtain the funding needed for larger items such as cars or a mortgage. Fortunately, there are a series of steps that one can take to recover from bankruptcy in Canada after filing for Chapter 11, though it does of course take some time and effort.
Posted by: credit cards | 05/23/2010 at 04:58 PM
r a car loan or a Credit Card increase, which will allow you to continue payments for a second year, thereby giving yourself a solid two years of credit repair.
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Posted by: Sizemur | 10/25/2010 at 07:00 AM
I have heard that filing bad credit in Canada is like hectic job, but you have showed such a simple way, how can is this be possible.
Posted by: bad credit mortgage | 03/14/2011 at 07:35 AM
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Posted by: dating | 07/22/2011 at 12:29 PM
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