Seven Ways to Stop Foreclosure and Bankruptcy

One of the average questions many people ask is, Will I be able to reestablish credit after a foreclosure or bankruptcy? The great news is, yes! The bad news can also be yes as well!

In this crazy society, credit is an important tool that is needed to get goods and services that you will need. However, far to soon, we look at credit problems as a right versus a privilege in this society. Once that you have been through all of the hassles of bankruptcy, it is time to alow down and take an inventory of the reasons that you want to file bankruptcy. These are the usual compelling reasons for filing bankruptcy;

Seven Ways to Stop Foreclosure and Bankruptcy

To get rid of all legal obligations toward debt. To stop the foreclosure proccess on their houses. Stop repossession of an automobile or other intrinsic property. The inability to pay incurred medical bills. * Loss of employment. *Spending way too much (no budget in place).

In many cases, you will probably have little or no credit card debts as of this minute. So, please use this as a chance to stop using them or at least start to control the way that you use them. If you can possibly avoid using credit cards, then stopping the use of them will really help you out. The needless use of credit cards is not a financial strategy that just anyone can use. I suggest the following actions to reestablish your credit:

1. Take stock of the reason for filing bankruptcy or foreclosure. It would be a good time to ask some very hard questions. Was going into bankruptcy and foreclosure the only way out of this situation? How can I protect my finances in the future? Was my financial strategy sound? (Did I have one?) Did I live beyond my means and budget? Did I have a budget? Usually, by looking back at your past, you can avoid future mistakes and situations. You have to ask these types of questions and betruthful about themand his can be the hardest part of rebuilding your credit.

2. If yiou don't have a checking or savings account open one. This will show a lending institution that you can handle money.

3. You can usually apply for some secured credit. Secured credit is hedged against a savings plan. Often, the credit limit is based on the amount of the money put into the plan. Make sure that your credit card company reports to all three of the main credit reporting agencies: Experian, Equifax and Transunion.

4. Send a letter to each of those credit reporting agencies telling them the reason for filing bankruptcy. A good, written statement shoiuld be added to your report for future creditors to look at.

5. Also, Make sure that Equifax, Experian and Transunion will show that your past bills have been dismissed in the bankruptcy or foreclosure. Often credit reporting agencies do not update their credit files to show that a debt has been stopped or dismissed in a bankruptcy.

6. Get rid of and settle any other debts that were not dismissed in the bankruptcy proceedings on time.

7. Review your credit score? Since your credit score is is reviewed by other creditors, you should always know what it is. Creditors use these scores to check your debt responsibility before giving you credit. Checking your credit report is easy to do. You can get a copy of your credit report if you request it.

These strategies are just some of the strategies that you ca use. Remember, it will take you some time, perserverance, and hard work on your part. Despite all of the hassles, you can still get back to a normal life if you take action and control of your future financial decisions and not let them control you.

Sound credit planning is essential to getting the most out of life. First Credit Associates has the knowledge and experience to guide you through your important credit decisions (before and after a bankruptcy).

How important is my credit score? What factors go into the credit-score formula? How do I teach my children about credit? How do I get the best credit card deal? Is there life after filing foreclosure or bankruptcy?