Start Repairing Your Credit Today!
Clearly filing a bankruptcy or a proposal will have a negative impact on your credit. It also creates a starting place for rebuilding credit. For some, the credit damage will already be done before you file a bankruptcy or proposal.
How Do I Affect My Credit Rating?
Your credit rating can be affected every time you miss a payment to your creditors. If you have accounts that go to collection agencies, whether they are the creditors or utilities or landlords, your credit rating will already be the same as bankruptcy. The rating will stay on your credit rating for six (6) years after your discharge. Proposals (generally a longer process) are on your credit rating for three (3) years after you have paid the proposal in full.
When you seek debt relief, it is a new starting point to a credit repair and rebuild.
Working Towards Freedom
If creditors are not going to receive their money back, they have a right to close your bank accounts. You should always have a bank account with a financial institution that you do not owe money to. Maintain a good working relationship with them. Start building a savings account, even if it is a small amount each month.
If you file for bankruptcy or a proposal and you have a secured loan (ex. car loan) and you plan to keep the asset, you will need to continue making all payments on a timely basis. The creditor will report to your credit bureau and help you re-establish your good standing.
Exelby & Partners Ltd. has Administrators with many years of experience. Our staff will give you advice on how to rebuild your credit and will answer all of your questions.
Improving Your Credit Score
When you file bankruptcy or proposal, the first step to improving your credit score is to complete the bankruptcy and receive a discharge or complete the proposal and receive a Certificate of Full Performance. This will let the creditors know that you are free from the debts included in the bankruptcy or proposal.
Improving your credit score means not going backwards. By learning to manage your money, you will ensure that you will be paying all of your monthly bills (utilities, rent etc.) and will not have negative reports on your credit rating.
Banking with a new financial institution and maintaining a good working relationship with them will enable you to talk with them about rebuilding your credit score once your bankruptcy is completed. Many banks and other financial institutions offer secured credit cards which require you to give them a deposit. Some can offer G.I.C. loans and hold the G.I.C. as security. Upon paying the loan, you receive the G.I.C. funds and a good report on your credit rating.
Maintaining secured loans in good standing will increase your credit score as well.
Our staff will explain how to successfully complete your bankruptcy or proposal and will give you advice on rebuilding your credit. Be sure to be honest with your creditors and ask us any questions you may have.