Are You Considering Bankruptcy Due To Your Credit History?
We've all heard of some people being so over stretched with their credit card usage that they apply for a new one to service their existing credit cards. They can only go so far with this method until the financial institutions refuse them another credit card. In the meantime, the interest they are paying on all of their cards is huge. They pay only the minimum interest, leaving the principal debt often untouched. Additionally, there is still the electricity bill, the mortgage or rent and food bills to pay.
Sometimes you get turned down because you don't have a credit history. Additionally, you may have just arrived in the country or you have never applied for a loan before and you have paid your bills on time every time. The reason you are usually turned though is because your credit rating isn't good enough or there have been too many entries or notations on your credit rating file.
It is a matter of public record in that the Official Receiver has to advertise the fact that you are applying for bankruptcy proceedings. The advertisement is usually in local and national newspapers or official publications such as the London Gazette, depending on your circumstances. The person handling your case will also have to inform certain companies and institutions who may have an interest in your financial situation.
If you have entries such as default of payments from previous loans or you are and existing bankrupt or a discharged bankrupt, lenders will probably refuse your loan application. Be aware that if you make inquiries about a loan from several lenders at the same time by way of comparison, your credit file will now have several entries in it. The lender may turn you down for a loan because of that. By the same token, while one lender may refuse your application, another lender could just as easily accept it.
Having stated the down side of bankruptcy, it's fair to say that this is still a practical solution to many who have found themselves in dire financial need. The process of lodging an application for bankruptcy is generally free of problems. Once the period of bankruptcy is complete, you can get on with your life. You will have to wait a while so that you can build up your credit rating again but eventually, things will return to normal one more.
Sometimes you get turned down because you don't have a credit history. Additionally, you may have just arrived in the country or you have never applied for a loan before and you have paid your bills on time every time. The reason you are usually turned though is because your credit rating isn't good enough or there have been too many entries or notations on your credit rating file.
It is a matter of public record in that the Official Receiver has to advertise the fact that you are applying for bankruptcy proceedings. The advertisement is usually in local and national newspapers or official publications such as the London Gazette, depending on your circumstances. The person handling your case will also have to inform certain companies and institutions who may have an interest in your financial situation.
If you have entries such as default of payments from previous loans or you are and existing bankrupt or a discharged bankrupt, lenders will probably refuse your loan application. Be aware that if you make inquiries about a loan from several lenders at the same time by way of comparison, your credit file will now have several entries in it. The lender may turn you down for a loan because of that. By the same token, while one lender may refuse your application, another lender could just as easily accept it.
Having stated the down side of bankruptcy, it's fair to say that this is still a practical solution to many who have found themselves in dire financial need. The process of lodging an application for bankruptcy is generally free of problems. Once the period of bankruptcy is complete, you can get on with your life. You will have to wait a while so that you can build up your credit rating again but eventually, things will return to normal one more.