Is it possible to rebuild a good credit standing after bankruptcy? The answer is an emphatic yes! Filing for bankruptcy does not mean you will never be granted credit or given a loan again. It all boils down to doing the right things to rebuild your credit after a bankruptcy.
Rebuilding your credit means having to re-establish your standing before the credit bureaus. To do so, you have to show yourself to be prompt and faithful in paying your dues. There is practically no way for an individual by himself to deal with credit bureaus and because of that, you need to go through an intermediary like a credit card company. Credit card companies submit regular reports on their clients to the credit bureaus.
So the first step would be to apply for a credit card. Since you have been a discharged bankrupt, some banks might impose certain restrictions and conditions in issuing you a credit card. For example, you may be granted a secured credit card i.e. one that is backed up by some collateral put up by you. Another example may be a bank issuing you a prepaid credit card which is a credit card where you are given credit only upon paying the bank. Some banks might even issue you a credit card that is only valid in certain countries and not worldwide.
Once you have been issued with your credit card, you should seek out a regular payment schedule where you can pay using your credit card. Then all you need to do would be to use your credit card to pay the regular payments each month. As long as you regularly pay each month’s payments on time with your credit card, your credit score will eventually rise as the credit company reports your payments to the credit bureaus.
Another means of increasing your credit score is to obtain a mortgage. This may be difficult due to your bankruptcy but there are some mortgage products you may qualify for. It may be one with a higher interest rate or you may need to take up an interest-only loan in order to get a mortgage. You cannot afford to be picky. Just choose a mortgage arrangement that is within your means to repay and start repaying on schedule. This will also improve your credit rating over time.
If possible, try to get a good mix of credit arrangements without biting off more than you can chew. For example, if you can secure a store account, a car loan and housing loan, it goes to show to the credit bureaus that you can manage different types of credit well. Such a credit mix will augur well for you in increasing your credit score.
Filed under Chapter 7 (Tampa) by on Jun 3rd, 2010. Comment. 
Willcom Inc., Japan’s giant telecommunications and wireless company that has been under bankruptcy protection since last month, is needs as much as 137.8 billion yen or about $1.5 billion as part of its efforts to return the company to profitability. The company plans to raise this huge amount through various means. It has asked for about 114.5 billion yen of its debts to be forgiven and it will raise another 11.3 billion yen through the sale of shares in the company and that of another spinoff company and finally state backed Enterprise Turnaround Initiative Corp and selected banks will finance as much as 12 billion yen.
With this massive injection of funds, Willcom will be able to continue providing its wireless data services by acquiring new network systems and continue doing business in Japan. In the process of its bankruptcy proceedings and restructuring, Willcom’s shareholders Carlyle Group of Washington D.C. and Kyocera Corp. will see its 220 billion investment in 2004 virtually wiped out. At present, Carlyle Group, the world’s second-largest private equity company, owns about 60% of Wellcom whereas Kyocera Corp owns 30%. The remaining 10% of the company is owned by the KDDI Corp.
The 11.3 billion sale of Willcom and another spinoff company’s shares will be made to Softbank Corp and Advantage Partners LLP. This will result in the two companies owning a third each of the spinoff company,
Willcom’s bankruptcy is the biggest bankruptcy in Japan in terms of size of debt. The company’s debts totaled 206 billion yen as of February 18. This eclipsed the previous record of 120 billion yen of debts by Heisei Denden Co. in October 2005. Two of Willcom’s biggest creditors are Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group, to whom Willcom owed about 17.6 billion each as of March 31 last year.
With its acquisition of Willcom shares, Softbank, another wireless service provider will have access to Willcom’s base stations, thus enabling it to speed up the transfer rate of its own networks. Its subscriber base grew by about 1.7 million in 2009. Softbank anticipates that this will give a significant boost to its earnings this year. Willcom, on the other hand, lost about 6% of its subscribers since July 2007 and currently have only about 4.4 million users.
Filed under Chapter 7 (Tampa) by on Mar 19th, 2010. Comment.
