With the current economic environment many people are being forced to consider taking drastic financial steps.
During the mortgage meltdown of the last two years many people have found themselves owing more on their home than they are worth and are letting their homes go back to the bank.
Also many companies have either cut back on the number of hours their employees can work or have laid off employees instead.
Once a person's income drops dramatically or they lose their job, they simply can not go on financially and may have to look at filing for personal bankruptcy.
After bankruptcy, what are the best ways to rebuild your credit? First you can start reestablishing your credit the day after discharge by using rebuilding credit cards.
Rebuilding credit cards are issued by banks that allow you to make a small cash deposit against them and since the bank is protected, there is guaranteed credit card approval.
These are not usually high credit limit credit cards because they require a cash deposit for the amount of the credit limit.
But they will report your payment history each month to the three credit bureaus and this will slowly rebuild a new history over time.
Now, in addition to paying your new secured Visa or MasterCard on time, make sure you do not neglect any loans that survived the bankruptcy.
For instance, you may still have the old mortgage payment and car loan payment, so you want to make sure you continue to pay those things on time.
Remember, failure to not do so will counteract the good credit history being accomplished with your new credit card.
Many people believe they must wait seven years after their bankruptcy is removed from the credit bureau before they can apply for new credit.
Here are three very important tips to help expedite how long it will take to improve your credit history.
-- You can begin to reestablish your credit the FIRST day after you are discharged.
-- Anyone can do this and it is not difficult to do.
-- there are lenders in Canada that will help you reestablish your credit post bankruptcy right from day one.
In Toronto, Canada you can obtain an unsecured personal loan up to $3000 from Prudent Financial Services the day after discharge.
Also in Toronto, you can obtain a secured Visa card from $500 up to $10,000 from Home Trust Company.
Most lenders will let you buy a home two years after bankruptcy discharge provided you have one year of clean credit of $5000 or more.
So if you have the financial resources to put up the $5000 security deposit, it is possible to rebuild a perfect credit score and buy a home two years after discharge.