A Double Bankrupt
October 27th, 2006 by Questions
My husband long before i married him went bankrupt on his own…then unfortunately in 1996 we went bankrupt once again. Mine has been cleared as it was only 1 but my husband,s hasnt as he had 2 of them. The thing is he has a few credit cards and also a personal loan but when i applied for a loan through the bank turned it down due to his 2 bankrupts. Is there any way around this please help!
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October 27, 2006 at 1:14 pm, Barton Goth, GCO Inc. Bankruptcy Trustees said:
As a result of filing a bankruptcy in Canada you will have negative infomraiton that will be registered on your credit history for an allotted amount of time depending on whether you are dealing with a first or second bankruptcy and there really isnâ€™t any way to get around this, that is whey it is important that once you are discharged from bankruptcy to actively work to repair your credit
In terms of rebuilding credit, following these steps will help you to rebuild your credit in as quick a fashion as possible.
1. Talk to your banker and say you want to reestablish your credit rating.
2. Be a regular and persistent saver.
3. Borrow using your savings as security. Secured loans are debts you incur that are backed up by some sort of asset or guarantee and are the easiest type of loans to obtain (consider obtaining a secured credit card from an organization such as hometrust).
4. Borrow for an RRSP. For some reason, banks have made it easier to obtain loans for RRSPâ€™s than most other forms of credit.
5. Replicate steps 3 & 4.
6. Borrow when you donâ€™t need to. Obtain a small line of credit. Use it to pay bills and then immediately pay off the line. Repeat this process and over time, it will have a marked improvement in your credit report.
The key to all of this is that you must pay your bills on time. Donâ€™t bounce any cheques, donâ€™t miss any due dates, and donâ€™t overdraw any of your accounts (even if you have overdraft protection). As well, always remember doing the above on a small scale reduces the risk and can increase the number of contracts you can enter into and hence the number of positive comments on your credit history.