REBUILDING AFTER INSOLVENCY. THE ULTIMATE GUIDE TO REBUILDING YOUR CREDIT NAME AFTER INSOLVENCY | FINANCIAL REHABILITATION | CREDIT RESTORED…
Discover the ultimate guide to rebuilding your credit name after insolvency. How to rebuild after bankruptcy is a question that countless prospective clients always ask. Discover the process of restoring your credit profile after sequestration. Rebuilding after insolvency is a crucial part of financial rehabilitation.
Rehabilitation order: Approved!
After sequestration, once the rehabilitation order has been granted. Every person who has gone through the insolvency process is eager to rebuild their reputation and rejoin the economy as quickly as possible.
What is the significance of participating in the economy post-sequestration?
After the completion of the insolvency process and the granting of a rehabilitation order, you will be able to incur debt once again. The time frame can vary depending on the circumstances surrounding your insolvent estate.
Once the Rehabilitation Order is granted, what happens next?
You’ll need to have a plan of action to clear your credit name and then rebuild it once again. Your credit name might not have any adverse listings on the credit profile, but if there’s been no activity on the profile for a long period of time, you’ll also have a low credit score.
Will the sequestration order be listed against your credit profile?
In many instances it’s not listed, and that is why you need to get the latest profile from all the major credit bureaus first before submitting the rehabilitation order to the credit bureaus.
I’ve been under debt review prior to insolvency. Will the rehabilitation order clear the Debt Review listing as well?
Yes, the Debt Review flag can be removed with a rehabilitation order. Contact a reputable debt counsellor to assist you in removing the flag from your credit profile.
Step-by-step guide to rebuilding your credit profile and score…
Where to start when rebuilding your credit profile?
- Obtain a credit profile from all the major credit bureaus.
- Ask your insolvency attorney to assess your current credit profile.
- Your insolvency attorney will provide you with a plan of action to clear your credit name if needed.
- Focussing on rebuilding your credit profile is crucial after clearing your credit name.
- You can start accruing debts again once you’ve rebuilt your credit profile.
I’ve completed all the stages up to step 3. How do I proceed with step 4?
Upon reaching the fourth stage, which involves the process of re-establishing your credit score and restoring your credit name following insolvency. There is only one method by which this can be accomplished:
Open a credit account to rebuild your credit score after insolvency
Though small, having an account on your credit profile is important. Look for any place where you can open a credit account.
Open a clothing account or credit card
Consider, for instance, a clothing account at a clothing group or store that was exempt from sequestration because it had no outstanding debt. Despite the small credit limit, it is inconsequential.
Buying on Credit: An important step towards rebuilding your credit profile after insolvency
If you make a purchase or use the store card or credit card, you have the option to settle the account at the end of the month or spread out the payments over three months instead of the usual six-month period. Make sure to consistently pay it on the last day of each month. Make sure to avoid making late payments. This information will be extremely beneficial in improving your credit score.
Applying for a home loan – Rebuilding your credit name after insolvency
Many of our clients sought bonds and were successful in getting them issued without a rehabilitation order. This while being bankrupt. In that case, before the client is allowed to accept the bond, we petition the court for rehabilitation order. Bear in mind the insolvent must qualify for rehabilitation for the court application to be successful.
The fact that it’s against the rules and regulations of the insolvency act to incur new debt while insolvent is the issue, not so much that you were able to obtain the bond without any difficulties. Once the rehabilitation order is granted, you can accept the bond.
Will I be eligible for a bond right after the rehabilitation order is approved?
It varies, but it is indeed possible to get a bond after the rehabilitation order is approved. It is crucial to work with a trustworthy bond originator when seeking assistance in this matter, as they possess the necessary expertise for a successful application. This is an important step in rebuilding after insolvency.
This must be the first question each person considering insolvency as a debt relief remedy enquires about.
It is very important and quite relevant to want to know how long insolvency will affect you and how to rebuild after insolvency.
Some of our clients are very fortunate and applied for rehabilitation shortly after the sequestration order was granted. However, this is not a given. You need to adhere to the rules as set forth in the Insolvency Act and therefore some individuals qualify for rehabilitation as soon as six months after date of sequestration and others only 3 – 5 years after date of sequestration.
Rebuilding after insolvency is an extremely sensitive matter and plays a crucial part in the decision-making process when insolvency is considered as a debt relief remedy. It is important to work towards restoring your credit name after insolvency. There’re many parts that play a crucial role, and one of the most important things to remember is that no matter what, the service provider you choose must be a reputable service provider that will know how to navigate the complexities of the sequestration process to ensure hassle-free financial rehabilitation.
Disclaimer: The article is for informative purposes only. It does not serve as legal advice, nor is it intended as such. Please speak to our attorneys before relying solely on the information herein to make any decisions.