There are many outstanding benefits of hiring a Minneapolis Bankruptcy Attorney to help you restructure or eliminating your debts but bankruptcy is not without its difficulties even after your debts are discharged. After you've successfully completed your bankruptcy you might find yourselve wondering how to keep this positive momentum going. One of the most significant components to success is a simple one we often overlook. By simply identifying our goals we can begin to develop plans to achieve them. For many of us following a bankruptcy the major priority is reestablishing our credit so that we may obtain financing once again. Many of us overlook the significance of financing; the ability to pay for groceries or unexpected costs when there is no cash on hand is incredibly stressful, and we tend to focus on the lack of cash in these circumstances. These things may seem out of reach to you after you file bankruptcy but this is certainly not the case.Avoid Predatory Lenders
There are many lending institutions and financing companies available to those who are working to re-establish their credit such as yourself but not all of them are acting in your best interest. Predatory lending is a booming industry in the United States and post-bankruptcy consumers are particularly vulnerable given their lack of alternative financing options and their inability to file again over the next several years. Regardless of which type of financing your seeking the first place to start is cleaning up the credit.
Clean Up Your Credit Report Before Applying for Financing
Bankruptcy does not automatically get reported correctly to the credit reporting agencies after your discharge. Old debt that has been discharged and eliminated can still be doing your credit report harm if left unchecked. Consumers should inform all of their creditors and the three major credit reporting agencies promptly after their discharge to minimize the time it will take to correct your credit report. After some time has passed (30 to 45 days is advised) consumers should obtain a new copy of their credit report to be certain any delinquent debts included in your bankruptcy are reflected correctly. If there are still mistakes with your credit report - which is quite common - you should dispute the item in question with the credit reporting agency and provide them with proof that this debt was included in your bankruptcy. People are often astounded by how dramatically their credit score improves once they get a credit report corrected and updated.
Use Sub-Prime Credit Cards to Rebuild Trust with Lenders
Getting financing to purchase a car can start by obtaining other financing more accessible to you and using it to re-establish financial responsibility. There are many sub-prime credit card lenders which may not offer the most favorable terms yet will serve your purpose just fine. Obtain new credit and use it regularly for purchases which can be covered by the income at your disposal. By using the card regularly and making payments consistently on time you begin to create a positive payment history for your creditors to review. It is essential you not overextend yourself with your credit purchases as a negative or delinquent status reported on your credit immediately following a bankruptcy is a major red flag to would-be creditors. After a period of three to six months you should again review your credit report and weigh it against your previous record to be certain there has been an improvement and that all items are reported correctly prior to your potential lending institutions review for auto financing approval.
Be Realistic and Practical with Your Purchases
It is also important to have realistic expectations and practical goals when searching for your new automobile. You may find out your hard work has paid off greatly and be approved for enough financing to cover something much grander than you initially envisioned but do not be tempted by this. Your priority should be reliability and affordability. It is essential you budget your financing within reason meaning you should not finance a vehicle that will cause strain to the rest of your finances.
Many sub-prime lenders have terms and conditions which weigh heavily in their favor such as automatic shut-off devices which can be activated if your payments are missed or inflated penalties and fees if your payments are not made in full in a timely manner. Thoroughly reviewing your contract and financing terms will save you a great deal of headache and frustration down the road. Nobody likes it when that great deal they found turns out to be a lemon with a lofty financial burden attached to it. The right car at the right price with a reputable dealer who cares about your situation is certainly not going to fall into your lap. You will need to put effort into your search for the right car for you and your needs so be prepared to do the legwork.
You should contact all your local dealers and lenders as well as utilizing online resources to be sure you are getting the best arrangement possible for yourself. Obtaining financing and auto loans following your bankruptcy may seem like a daunting task at first but many filers are pleasantly surprised by how rapidly they are able to re-establish themselves and with hard work and personal accountability we are confident you will be driving on the road to financial success in your near future as well.
Contact a Minneapolis Bankruptcy Lawyer
If you have any further questions about obtaining financing for a home or car after filing bankruptcy in Minneapolis contact our Minneapolis Bankruptcy Lawyers, we'd be happy to help! Office hours are Monday through Friday 8am-5pm. You can either call us or schedule an appointment online.
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Kain & Scott, P.A.100 South Fifth Street #1900
Minneapolis, MN 55402
(612) 843-0527
info@kainscott.com
