You filed for bankruptcy and after what seemed to be a lengthy time your application was granted by the courts. Fortunately, you were able to keep your house and most of your other debts including credit cards and one personal loan were discharged. Unfortunately, bankruptcy has left you in a bit of bind: your credit rating has been trashed and you fear that you will not be able to get refinancing on your home loan. Fortunately, there are ways to get financing for consumers who have filed for personal bankruptcy. Let's take a look at some of the steps you should take before applying for a loan.



Immediately after your personal bankruptcy has been granted, you should obtain copies of your credit reports and examine them closely. Your bankruptcy will likely be listed as well as every other unfavorable comment from your creditors. You can't do anything about that ? what is done is done, but you can get the credit agency to remove any information that is false.

For the next one to two years you must work diligently to begin repairing your credit. The bankruptcy will stay on your credit reports for as long as ten years, but some of the other items can be removed or updated well before then. Keep making mortgage payments on time and pay every other bill you have on time too. If you managed to hold onto a credit card, use the card sparingly and pay it off immediately.

After two years time contact your current lender and discuss refinancing through them. Since you already have a loan with them and are up to date on payments, they may set aside their concerns and offer to you a new loan. This loan is only worth your while if it works to reduce your payments or reduce the term of the loan, or offer some other relief to you. However, if the verdict on application is returned as conditionally approved, make certain that those conditions can be met such as an additional down payment from you. If this is the case, consider borrowing funds from a family member or friend or even raiding your retirement account if needed.

In all cases, being honest with the lender can only help you out. They need to know what risk you are to them and although a personal bankruptcy ruling is unfavorable, your recent attempts to remedy your credit can work to your favor.