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Being Debt Free After Filing Bankruptcy

After filing Chapter 7 bankruptcy it’s hard to get financing. That’s why it is important to be proactive rebuilding your credit. After Chapter 7 most individuals are debt free but many times that is not enough. Consistent payment on a personal loan will be helpful in reestablishing credit. Once the bankruptcy case is discharged, personal loan options may include secured personal loans, unsecured personal loans, or lines of credit. The chances for approval will be greater if there has already been a move to boost the credit record with an excellent payback history on a credit card or auto loan. All of these things work together to prove to the lending institutions that although this person filed for bankruptcy, he can now be trusted to be on time with payments. Time and patience are absolutely necessary virtues in obtaining loans after filing bankruptcy. While all of the creditors who are willing to issue credit cards or charge accounts will most certainly be charging a higher interest rate to begin with, the customer who proves to be reliable over time may ask for a lower rate. Asking certainly can’t hurt, and may be a great help to one’s future buying power. These consequences after you file for bankruptcy are annoying. Everything is predicated upon the rock-solid commitment on the part of the person with bad credit to do everything in his power to make everything right again. Rock-solid commitment is required of us in every area of our lives, as well. After a few years of clean finances you’ll be surprised how many lenders will be willing to take a chance on you.

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