Will I ever be able to borrow again after going bankrupt in Brantford?

Many people worry that if they go bankrupt in Brantford, they will never be able to borrow again. They are afraid that they will never have another credit card, will never be able to buy a car, and will never own a house.

Obviously too much debt can get you into trouble, so after your Brantford bankruptcy is completed, you do not want to accumulate an excessive level of debt.

However, a credit card is often essential in today’s society (it’s hard to book a hotel without one), and owning a house is a dream of many residents of Brantford. In fact, people live in Brantford because house prices are less expensive than in Cambridge, Hamilton, Mississauga, or Toronto. Will you ever be able to own a house?

The answer is yes, it is possible, once your bankruptcy is completed, to re-build your credit so that you can borrow again.

According to Equifax, Canada’s largest credit bureau, a bankruptcy remains on your credit report for six years from the date of discharge. That means that if you go to borrow money at any time in the six years following your discharge from bankruptcy, the lender will know that you filed for bankruptcy in Brantford.

However, that does not mean that they won’t lend you money. It just means that your credit is not as good as someone who never went bankrupt.

For example, if you want to finance a car, the car lender will probably require a higher down payment or security deposit than if you were never bankrupt, and they will probably charge you a higher interest rate in the first year or two following your bankruptcy.

If you want to buy a house, the lender will require a larger down payment than someone with “perfect” credit. Someone with “perfect” credit and a high income may be able to buy a house with virtually no money down. Because of your previous bankruptcy, you will probably need a 15% or 25% down payment. (As an aside, we always recommend a high down payment, because it reduces your monthly payments).

The point here is clear: to re-build your credit, you need to have money. Therefore, our best advice for repairing your credit is this:

As soon as your bankruptcy in Brantford is finished, start saving money. (In fact, if you have extra money, you can even start saving while you are bankrupt). You can use those savings to re-establish credit by getting a secured credit card. Your savings will also be used as the down payment on the car, or even the house you want to buy in the future.

The professionals at Hoyes Michalos & Associates Inc., trustees in bankruptcy and the sponsors of this site, have helped hundreds of people file bankruptcy in Brantford, and many of those people have gone on to own cars and homes after bankruptcy. We can explain in detail how to repair your credit, so please e-mail us or call us today in Brantford at (519) 770-4440 to arrange a no-charge initial consultation, and let’s get started.

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