bankruptcy Pardon
This might be a stupid question but I am trying to purchase a new home for the first time I have a Bankruptcy on my credit file the are only 4 creditors which total 2000.00 and one other which was 3000.00 the creditor for 14000.00 was paid because my wifes name was on the 3000 loan. so it seem that to have this on your credit file for seven years for a 2000.00 dollars seems stupid. Is there a was to pay back the 2000.00 after the bankruptcy ad have the report removed from me credit file before the seven years.
Being pardoned from a bankruptcy isn’t an option and simply paying your debts in full after the bankruptcy won’t result in the coments being removed from your credit file.
As a result of a any bankruptcy that is filed there will be an R9 listed with the credit bureau for a maximum 6 years from the date of discharge. However, by following some simple steps you can often rebuild credit much quicker than most assume. The best way to do this if to follow these steps:
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 Capital One or Hometrust).
4. Borrow for an RRSP. For some reason, banks have made it easier to obtain loans for RRSP’s than most other forms of credit.
5. Replicate step 4.
6. Borrow when you don’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. Don’t bounce any cheques, don’t miss any due dates, and don’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.