bankruptcy

Getting a Home Loan After Bankruptcy

Tip! There are no after payments. Once your bankruptcy is discharged that is it, you are debt free.

There are two issues that will be taken into account by the lender, they’ll verify your income and probably request a down payment.

Waiting period

There is a waiting period you’ll have to face after bankruptcy has been discharged. Most lenders will require that 3 years have gone by since the discharge before even considering granting you a loan. During this time you should make sure your bills are paid on time and you don’t fall behind payments, so when you finally apply for a loan your credit will have improved considerably and you’ll be able to get a home loan without the need of money down.

Tip! All debts are wiped out in Chapter 7 bankruptcy. You wish.

Down Payment

If you intend to get a mortgage loan before this waiting period, you’ll need to meet very strict requirements. You’ll have to show that you haven’t missed a single payment nor you have late payments at all. You’ll also be required to provide a down payment in order to get approved. You’ll have to put as much as 10% of the property value down. If you can’t provide a down payment it is quite difficult to get approved but there are still other options.

Tip! Your credit history will be damaged by bankruptcy; it will appear on your credit report for as long as 10 years.

You can always borrow the money from family or friends. You can always repay them since when you get the home loan you’ll be able to request a home equity loan as you’ll by then own the property. Bear in mind though, that some lenders are reluctant to accept down payments not raised directly by the applicant and you are obligated to reveal this information, so you might as well ask the lender before making such a move

There are programs that can help you with down payment too. These basically provide the seller the ability to help the buyer with the down payment which is otherwise strictly prohibited. You can ask your real estate agent for this information as they are surely able to provide it. Some lenders are also reluctant to accept this kind of transactions, but you can always try.

Tip! Obtain a copy of your bankruptcy and discharge papers from your attorney or the courthouse. This may include a copy fee.

Another option is to apply for government grants, there are grants specially designed for helping people in this kind of situations. Consult with local offices and with your real estate agent weather you qualify or not for such aid. As opposed to the previous options, government grants do not need to be repaid so they should be the first solution to consider as you could save thousands not only by not paying back the principal but also by avoiding interests.

Where to find information

You can find all the information, contacts and figures online by searching the net, but if you feel you need some guidance you can always seek professional help. You can contact your real estate agent or you could join some of the online sites that provide access to many home loan lenders and government grants. That way you can solve this issue from the comfort of your home.

Tip! It is also a requirement, for those wishing to obtain a bankruptcy home loan, to have a debt-to-income ratio of between forty-five to fifty percentile range.

Mary Wise, a professional consultant with twenty years in the financial field, helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and preventing consumers from falling into the hands of fraudulent lenders.

You can visit her site and get aid for Home Loans regardless of your credit. If the link doesn’t work, just copy badcreditloanservices.com and paste it in your browser’s address bar.

bankruptcy

Loan After Bankruptcy: Steps to Take Before You Apply

Tip! The forth factor that needs to be considered on the road to filing for bankruptcy, is to determine whether you will seek professional assistance in the pursuit of a bankruptcy case. Some people do elect to file for bankruptcy on their own without the aid and assistance of a lawyer.

When it comes to a loan after bankruptcy, here are some steps you can take before applying which could increase your chances of qualifying.

First, work on increasing your credit score. This is very important, because most lenders will review your credit report when deciding whether or not to extend you a loan after bankruptcy. This is true whether you are talking about a car loan after bankruptcy, a conventional home loan after bankruptcy, or a personal loan after bankruptcy.

Tip! You can’t get rid of back taxes through bankruptcy. Generally speaking, this is true.

So how do you increase your credit score? There are a number of ways. One is by removing any inaccurate or obsolete negative information from your credit reports. Another way is to open some new accounts and pay them in a timely manner over time. There are more ways to increase your credit score, but I don’t have enough space to cover them here.

Second, you will need to know which lenders to approach when it comes to applying for a loan after bankruptcy. For example, if you apply for with a lender that doesn’t accept applicants that have a recent bankruptcy on their credit report then you never had a chance to begin with.

So how do you know which lender to approach? Ask questions. This is critical when applying for a loan after bankruptcy. What kind of questions should you ask? While there are several, let me give you two as an example:

1) Do you consider applicants who have a bankruptcy on their credit report?

The lender will probably want to know how old the bankruptcy is, whether it was discharged or dismissed, etc.. You will want to have that information available should the lender consider extending you a loan after bankruptcy.

Tip! Everyone will know I’ve filed for bankruptcy. Unless you’re a prominent person or a major corporation and the filing is picked up by the media, the chances are very good that the only people who will know about a filing are your creditors.

2) What are your qualification guidelines?

Most lenders have a minimum criteria that applicants must meet in order to qualify for a loan. For example, if you apply for a home loan after bankruptcy, the lender will probably require a minimum credit score, a minimum debt to income ratio, etc. in order to qualify for the loan. You need to find out what the lenders’ minimum criteria is before you apply for a loan after bankruptcy.

Tip! There are no after payments. Once your bankruptcy is discharged that is it, you are debt free.

Finally, after you’ve increased your credit score and found a lender who will consider your application for a loan after bankruptcy you will need to negotiate the terms such as the interest rate, finance charges, down payment, etc.

This is where a lot of people get taken advantage of when it comes to getting a loan after bankruptcy. Some lenders will act like they are doing you a “favor” and tack a pile of interest on top of the loan - and add extra finance charges. Depending on what you’re financing, this can add $100s or even $1,000s to your loan after bankruptcy. In After Bankruptcy Credit Solutions, I cover specific strategies you can use to stop lenders who try to take advantage of your situation.

Tip! As we said before, your financial and social status will be deeply affected. People tend to loose faith upon someone who has filed for bankruptcy.

Now you know some specific steps you can take before applying for a loan after bankruptcy which could help increase your chances of qualifying - as well as what to watch out for once you’ve found a lender who will extend you a loan after bankruptcy.

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Copyright © 2006 Innovative Solutions Publishing, Inc. All rights reserved.

DISCLAIMER:

This information is designed to provide only a general overview of the subject matter herein.

This information is provided with the understanding that neither the publisher nor author is engaged in rendering legal, accounting or other professional advice. If legal or other expert assistance is required, the services of a professional should be sought.

Tip! Fourth step is optional; you can apply for a mortgage after bankruptcy even with bankruptcy discharged yesterday and just about any time you want.

Neither the publisher nor author shall be liable for any loss or damages, including but not limited to special, consequential, incidental or other damages, caused by the information contained herein.

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About the Author: R. Lawrence Anderson is author of After Bankruptcy Credit Solutions, which shows individuals how to qualify for a loan after bankruptcy.

bankruptcy

Rapid Credit Score Recovery After Bankruptcy!

Tip! Get a copy of your credit report. Many times (most times) the credit accounts that are absolved with your bankruptcy are not removed from your credit report immediately.

Most credit experts agree that the worst possible credit entry on your Credit Report is a Bankruptcy. Whether you have filed a Chapter 13 (13 is a pay back plan with just some debts eliminated) or Chapter 7 (everything is eliminated except for a few essentials), it demonstrates a complete failure in managing your credit.

Regardless of why you filed, this entry stays on your credit report for 7-10 years. Everyone has their story, and sometimes circumstances go beyond anyone’s ability to recover from insurmountable debts. A good example is when a family member suffers a catastrophic illness and the medical bills are way beyond any health insurance benefits.

But there are ways to recover fairly quickly from this type of situation. It takes a little dedication and effort but in as little as 18 months you can have your credit score back in the high 600 range. Your credit score can range from 300-800+, and if your score is below 600 for any reason it’s time to make some changes.

Tip! Filing for bankruptcy will improve my credit rating because all those debts will be gone. That sounds like an ad for a bankruptcy lawyer trolling for clients.

The reality is that no one is better at improving your credit score than you. It doesn’t take any special talent or skills. You do need to face the reality that you are at a disadvantage and it’s time to start taking corrective action. Put the bad experience behind you and move forward. Easy to say, sometimes hard to do. So if you need some counseling help, a good place to look is your local community organizations or perhaps even your church. There are people that are willing to help you get over this problem, and don’t have to pay for it.

A low credit score can cost you money, job opportunities, and credit denial. Bad things happen to good people and so many creditors may consider more than just your credit score. But your credit score still plays a big part in most decisions made on whether to grant you credit and at what interest rate.

Many high paying jobs ($100,000+) or jobs that you have a key role in handling money will run a credit check on any applicant. You can understand why, sometimes the temptation is to great and people have misused their positions for financial gain. Employers have to protect themselves so this policy is very understandable.

Tip! A bankruptcy filing remains on a Credit Report for as long as 10 years, and it also stays on Court Records for as long as 20 years. Thanks to this, your chances of getting a loan and even a job again, will be minimal.

The lower your credit score, the higher interest rate you will be offered due to the higher risk you represent. Interest rates can go as high as 28%, that’s almost a third of the amount you borrow. But you can still find a relatively good rate, maybe not the lowest (prime rate +1) but within a few points.

The tough part is finding some creditor to give you a second chance. And you also have to be very careful, as there are many companies that will take advantage of your situation. The credit industry is a business just like any other. There are lenders out there that will give you credit, but the catch is finding credit at a reasonable cost.

Start out slow, and make some small purchases at stores who will grant you a small amount of credit at a reasonable rate. Electronic, appliance, and furniture stores are usually willing to give you a chance to start building good credit. A good example in Texas is Conns (http://www.conns.com) Appliance Stores. They have a good program and charge very reasonable rates.

Tip! I can max out all my credit cards, file for bankruptcy, and never pay for the things I bought. That’s called fraud and bankruptcy judges can get really cranky about it.

Stay within your budget and make a down payment of half. Then try and pay off the note within 6 months or as early as you can. Do the same thing at a furniture or appliance store. You can have 3-4 good entries in your credit file within 9 months.

Get a small limit (or even a deposit based credit card - most will convert in 6 months or less if you abide by all the requirements) credit card and only charge very small amounts. Pay off your balance in full each month, and pay it off early if possible.

Make sure that you pay on time or early on any credit account that you retained after your Bankruptcy filing, such as a house or car. This will show creditors that you are now managing your credit and will improve your credit score.

Tip! Get a referral. If you know someone who has filed bankruptcy, don’t be afraid to ask them whether they felt their lawyer handled their case well.

In fact if you do all of these things above and follow the basic instructions you will get back up to the 680 score and above. I have seen it happen time and time again. This is not brain surgery and anyone can recovery from a bankruptcy filing in a comparatively short time.

It’s also a good idea to monitor your credit reports during your recovery period. Everyone should check his or her credit report each year. It’s now Free and won’t take much time as long as you stay on top of it. You can request one credit bureau at a time every 4 months and have a good idea of what’s been entered in the past 12 months.

Tip! Obtain a copy of your bankruptcy and discharge papers from your attorney or the courthouse. This may include a copy fee.

Don’t pay for something that you can get for FREE. Go to the Federal Trade Commission’s site here to get the full details of getting your free credit reports:

http://www.ftc.gov/bcp/conline/pubs/credit/freereports.htm

With a little determination and effort, you can recovery and increase your credit score even after filing a bankruptcy

New Clean Credit is a website that provides free information on Credit Repair. Get their Free Repair Your Credit In 30 Days Guide. Increase your credit score today. Click here to learn more: http://www.newcleancredit.com

bankruptcy

Personal Bankruptcy Tips Guide

Tip! After filing for bankruptcy, all of your possessions will be in charge of the trustee.

No one in this world is immune from financial disorders. These disturbances may trouble rich and poor alike in various forms such as, declining cash flow, deteriorating net worth, or unexpected emergency expenses. But filling for Personal Bankruptcy is not the only remedy for them.

Experiencing bankruptcy can be an awful situation as it can influence your credit record for quite a considerable period of time. Moreover, the social and corporate stigma attached to it can seriously hurt your self-esteem. Thus, you should weigh all your options and exercise all the alternatives before opting for Personal Bankruptcy.

To avoid bankruptcy at any point in your future you should first and foremost, keep track of your spending habits. You should think carefully before spending on any thing. All your dues should be paid punctually to avoid any late payment charges. As a general rule, the credit cards should be avoided as they encourage you to spend more than what you can afford. Instead of credit cards use of debit cards should be preferred because they let you spend only what you have got in your bank account. As a wise consumer you should take advantage of the competition in the markets by being aware of the information provided in your newspaper and on internet. You should always strive to secure the best deal for whatever you purchase. While shopping, a bit of planning may let you get maximum out of your shopping trips which otherwise can waste your money in extra fuel costs.

Tip! After declaring bankruptcy, your bank accounts will be closed, credit cards, and everything that has been bought on hired purchase, such as a car or a house will be returned to the owner.

If you have already crossed this stage and feeling financially strained then also you should not panic and try all the alternatives to bankruptcy. The best way to ease your financial situation is to approach your creditors, like credit card companies and work out some arrangements, which can be mutually beneficial to both the parties. Making informal proposals or suggesting them some payment plans to help you pay-off your debts in an orderly way can certainly help you to ward-off bankruptcy. Many creditors are more than willing to cooperate with you and work out a new arrangement as it is to their advantage to keep you as a customer. Another very desirable alternative to bankruptcy is getting all your debts consolidated.

Today there are many financial institutions that are providing debt consolidation services. They consolidate all your debts into one loan for which you have to make reasonable monthly payments. This is very beneficial for a person who is being plagued by his numerous debts as it relieves him both financially and psychologically; because after consolidating his debts he will have only one creditor and will have to pay only one monthly installment. A debt workout is another form of alternative in which your attorney approaches your creditors and makes arrangements with them to pay off your debts amicably.

Tip! Filing for bankruptcy will improve my credit rating because all those debts will be gone. That sounds like an ad for a bankruptcy lawyer trolling for clients.

Thus, if you follow these tips and exercise these alternatives properly, you may definitely save yourself from the problems that are associated with Personal Bankruptcy.

Mansi aggarwal recommends that you visit Personal bankruptcy tips for more information.

bankruptcy

Personal Bankruptcy Advice Guide 101

Tip! You can also lose valuable assets when filing for bankruptcy, or you have to pay the equivalent in money.

Personal Bankruptcies are rare but not unique. Before opting for bankruptcy you should be very clear about its meaning, when to opt for it, the right process for declaring bankruptcy, and what are its implications.

Bankruptcy is not the end of the world (as considered by many) but is a chance to make a new beginning. It is a merciful process by which even a severely indebted person can disentangle himself from all of his obligations. However, before opting for bankruptcy a person should exercise all the options and if there is no other option left then only he should declare the bankruptcy by filling a petition with the help of a qualified bankruptcy attorney with a statement of his assets and liabilities as well as of his creditors.

Tip! Pay all of your bills on time. Bankruptcy is a means to financial recovery.

Basically, by filling bankruptcy a person lets the court system take over his finances and appoint someone to make an estimate of his debts and explore different ways to repay them. As soon as a person files for bankruptcy and the court approves the petition, all his transactions would get frozen from then on and all his creditors will be notified to not to make any attempts to recover their money from the debtor. After a certain period of time, when the debt has been satisfactorily resolved under the agreement set forth in the bankruptcy proceedings, a discharge is issued releasing the debt and the debtors are duly ordered to stop collection of discharged debts, including legal action and all communications with the debtor. During this period the bankrupt person can avail limited credit only as the legal system and his financial statement will not allow him to enjoy credits beyond a certain limit. Once the total debt amount estimated by the court has been paid, these limits are withdrawn.

In US one can file either Chapter 7 (for irreversible insolvency) or Chapter 13 (for temporary insolvency) bankruptcy. Under Chapter 7, the bankrupt is permitted to retain exempted assets and property. However, the recent tax obligations and the debts to government units are not exempted. Those having steady source of income can only file chapter 13 bankruptcies. Basically, this kind of bankruptcy indicates that the bankrupt is willing to pay his debts within 5 years. Accordingly, his existing assets are not liquidated. Chapter 12 a variation formulated in 1986 is very similar to Chapter 13 bankruptcy. It is applicable to those people who qualify as ‘family farmers’ (people or families who depend on farming for their livelihood) and has a higher debt ceiling than Chapter 13. The social and corporate stigma attached to filling for insolvency has also been removed by the new amendments in US laws. By making this matter confidential the US government has provided an incentive to the bankrupt party to make another attempt at financial solvency.

Tip! The forth factor that needs to be considered on the road to filing for bankruptcy, is to determine whether you will seek professional assistance in the pursuit of a bankruptcy case. Some people do elect to file for bankruptcy on their own without the aid and assistance of a lawyer.

While filling for bankruptcy it is essential for anyone to provide full disclosure of his assets and liabilities otherwise the person will be considered as fraud and penalties will be imposed on him. Hence, by being honest one can definitely restructure his finances with the help of bankruptcy.

Mansi aggarwal recommends that you visit Personal bankruptcy advice for more information.

bankruptcy

Buy A Business Without Breaking A Sweat… Even With A Big, Fat Bankruptcy On Your Record

Tip! Forward these documents along with the discharge to all of the credit-reporting agencies (listed below) requesting that each creditor included in the bankruptcy be updated to properly reflect a zero balance with the status included in bankruptcy.

Every time I write an article or do a piece on buying businesses someone will always ask me if it’s possible for them, even with rotten credit and a string of bankruptcies on their record. When I tell them it’s totally possible they just don’t believe me.

Realize this: I’ve been doing this for over 50 years and I don’t remember anyone in the last 30 or 40 years who used investor financing where — even if they had filed bankruptcy — anyone checked on them. Not the owner or the broker or anyone else. And if they did check on them, they really didn’t care.

Tip! If I file for bankruptcy it may cause more family troubles than I already have, maybe even divorce.

Why?

Simply because What happens is if you have a poor credit rating or if you have a bankruptcy that’s only going to be important to the owner or the bank or some other lender if they are going to be giving you financing.

What you’re going to find is, I hate to this, they don’t check. Do they occasionally? Probably, I’m not aware of it, but I don’t remember the last time that came up, but I do remember every week talking to people that filed bankruptcy or had terrible credit, and it’s not important because what happens is you’re focusing on you the buyer.

This is why I always say don’t start a business and don’t buy some little donut shop — because you’ll usually have to get traditional financing where things like your credit actually matters.

But when you buy something larger — a million dollars or more — the people coming in, the people putting the money up, the people checking are going to see the business, not you.

In fact, you can be a flake today and just filed bankruptcy and have no money and don’t pay anybody. Tomorrow, when you take over that business, you can go out and buy it. As soon as you go into escrow, they’ll deliver a new Mercedes to your house. You can go out and buy a ten million dollar house.

Tip! The third step you need to undertake when it comes to seeking bankruptcy relief is to contact all three major credit bureaus. When all is said and done, the three major credit bureaus may have the best record of all of your outstanding debt.

Why?

Because you now have taken on a persona of that business you bought. You are now that business. You are now a person making X number of dollars a year, not some person that screwed up, with rotten credit or whatever.

Arthur B. Hamel has bought over 200 businesses in the past 50 years, and is a well-known author, consultant, investor, business owner, and dynamic lecturer who has shared the stage with such business greats as Robert Allen of “No Money Down” fame. For the past 20 years Art has taught thousands of people around the world — even so-called “little guys” with no formal education or money — how to quickly and easily buy large, multi-million dollar businesses with no credit, banks or prior business experience. He has recently decided to share his unique business-buying secrets and tactics free of charge at: http://arthurhamel.com