Personal Loan After Bankruptcy: Can You Qualify?

If you want to qualify for a personal loan after bankruptcy there are four key areas that will determine how successful you are:

1) Your credit score 2) Collateral 3) Existing debt 4) Time

Let’s look at each factor in more detail and how they can help you increase your chances of qualifying for a personal loan after bankruptcy:

1) Credit score: In order to qualify for a personal loan after bankruptcy you will need to meet the lender’s minimum credit score criteria, provided the lender extends loans to individuals with a recent bankruptcy. You’ll want to find out before applying for a loan: Simply ask the lender if they consider applicants with a bankruptcy on their credit report.

Let’s suppose the lender does. How can you increase your credit score enough to qualify for a personal loan after bankruptcy?

The first step is to order copies of your credit reports from the three major credit reporting agencies (Experian, Equifax, and Trans Union). Next, make sure any inaccurate or obsolete negative information on your credit reports is removed or updated. I go into detail on this in After Bankruptcy Credit Solutions. I also explain how to legally add positive lines of credit to your credit reports, which is a very powerful way to increase your credit score – but I’ll save that for another article.

2) Collateral: Another major factor in obtaining a personal loan after bankruptcy is how much collateral you have. Why? Because if a lender has collateral that they can go after (i.e., equity in your home) should you default on the loan, that reduces their risk dramatically. So if you can provide collateral to the lender, it can increase your chances of qualifying for a personal loan after bankruptcy.

3) Existing debt: You don’t want to have too much debt when you apply for a personal loan after bankruptcy. If you do, the lender may feel you don’t have the capacity (enough income) to cover the loan payment, because you have too many other monthly expenses to pay (i.e., credit cards, auto payment, etc.) – as a result you could get turned for a personal loan after bankruptcy.

On that note, find out if the lender has a minimum income requirement, or debt-to-income ratio you need to meet. If they do, make sure you meet their minimum requirement before you apply for the loan.

4) Time: It’s been said that “time heals all wounds” – well, when it comes to obtaining a personal loan after bankruptcy this can certainly be true if you’ve developed a positive payment history since your bankruptcy.

When a lender is deciding whether or not to extend you a personal loan after bankruptcy, your credit report will play a major role. Generally speaking, if your credit report reflects a positive payment history for at least two years since your bankruptcy, it will certainly help.

We have looked at the four major factors that will determine whether or not you qualify for a personal loan after bankruptcy: Your credit score, collateral, existing debt, and time. To the extent you can strengthen each one of these you increase your chances of being approved for a personal loan after bankruptcy.

Even if you can’t qualify for a personal loan after bankruptcy immediately, don’t be discouraged! Remember, time can heal all wounds when it comes to qualifying for a personal loan after bankruptcy. Just make sure to focus on increasing your credit score, pay your existing bills on time, don’t take on too much debt, and build up your net worth.

The company and product/service names referenced in this article are the trademarks, registered trademarks or service marks of their respective owners. None of the owners have sponsored or endorsed this article.

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.

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.

http://bankruptcy-guide-to.com/a/333155/Personal+Loan+After+Bankruptcy%3a+Can+You+Qualify%3f.html

How To Start An Online Bankruptcy Forms Processing Service

Due to the dramatic increase in technology, business professionals now have the ability to outsource their skills and earn extra money working from home as a bankruptcy forms processor. Unlike an attorney or notary public, a bankruptcy forms processor does not have jurisdictional limits. In other words, a bankruptcy forms processor could live in Yellow Springs, Ohio and prepare bankruptcy petitions, pleadings, Motions and other court documents for attorneys practicing in California, New York or any other U.S. state.

In fact, a bankruptcy forms processor can set up a bankruptcy business in their home with very little money and earn a full-time income very quickly. This concept has also opened the door for attorneys practicing in other areas of law to open a sideline bankruptcy practice, and many of these attorneys seek a freelance forms processor to process their paperwork for them.

This is where you as a bankruptcy forms processor can fill a need that is becoming more popular as electronic filing procedures become more the norm. In fact, some states now require electronic filing of all court documents. Paper documents are only accepted by the court from consumers or in other rare circumstances. It will not be long before all the states will have electronic filing procedures in place and those resisting the change will be left behind.

A typical bankruptcy forms processing business might operate like this:

1. Client either downloads or is emailed a set of Client Intake Forms in PDF format to print and fill out at their leisure.

2. Client will fax or email their completed forms to the attorney or forms processor for review. If the attorney decides to accept the bankruptcy case, the forms processor can begin drafting the bankruptcy petition from the information provided on the Client Intake Forms.

3. Areas of the Client Intake Forms that are not properly completed by the client or containing statements that require a more detailed answer would be easy to take care of. The forms processor or attorney will simply call up the client and obtain the information. No appointment would be necessary.

4. After the drafting of the bankruptcy petition, the forms processor saves the document in PDF format and sends it to the attorney as an attachment on an email.

5. At this point the attorney may wish to meet with the clients to review their bankruptcy petition before filing, but it is not absolutely necessary. Some attorneys I worked for never meet the client face-to-face except when they showed up at court. They communicated with the client by email or telephone.

Note: Electronically filed documents do not require the client’s signature so it is not necessary to meet the clients face-to-face before filing the bankruptcy petition. An attorney is provided with an electronic signature by the court that he uses to sign all electronic documents filed on behalf of the client he or she represents.

6. After the attorney receives the bankruptcy petition by email, he or she will save it on their computer under the client file name and begin the review. The attorney can either print out the bankruptcy petition and make changes with an ink pen, or review it on the computer screen and note any changes in an email to the forms processor.

7. After the attorney has approved or made changes to the bankruptcy petition, he or she will email it back to the forms processor. The forms processor will make the changes and prepare a final bankruptcy petition ready for electronic filing. The forms processor emails the final petition to the attorney for final approval.

8. Upon approval by the attorney, the forms processor will electronically file the bankruptcy petition with the proper court or email to the attorney for printing, copying and filing.

As you can begin to see, it would be very easy to start a forms processor service working from home. So if you were like me and are tired of the office politics and playing the mental games, you now have the opportunity to work from a peaceful home environment where you can focus more on each case and give your clients the personal touch that will set your business apart from the big companies.

This article is a book excerpt from, “How to Start a Bankruptcy Forms Processing Service” by Victoria Ring, Certified Paralegal. More information is available online at http://www.50statenotary.com/bankruptcybook/

Victoria Ring is a Certified Paralegal and Notary Signing Agent. She started the first electronic bankruptcy paralegal service on the internet (The Lawyer Assistant) to serve attorneys nationwide. Victoria has authored 17 books and 850 articles since her publishing career began in 1988.

http://bankruptcy-guide-to.com/a/2818/How+To+Start+An+Online+Bankruptcy+Forms+Processing+Service.html

After Bankruptcy Credit #14

When it comes to filing for bankruptcy most people believe that it will take an entire seven years before they can receive credit again. In some cases this is true but in the majority of cases there are things you can do that ensure that you can start building after bankruptcy credit right away.

The first thing you should do when you need after bankruptcy credit is to check your credit report. Your credit report is used by any prospective lenders to gauge your credit worthiness. Any small mistakes on this report can damage your chances to receive after bankruptcy credit.

Credit reports are available from several agencies online for a fee. You provide some detailed and personal information regarding yourself and your credit report will be delivered immediately after you have paid the fee.

Once you have the report youll need to be certain that you check each entry for accuracy. If there is anything incomplete or inaccurate you should contact the company that reported this information. This could be a financial institution, a credit card company or a department store.

Speak to a representative in the credit department and explain the problem. Once they agree to fix it get their word that they will be correcting it on your credit report as well. Order another credit report within a few weeks to ensure this has occurred.

If you need after bankruptcy credit but you are not comfortable with contacting companies who have reported inaccurate information yourself, than you can hire someone to do it for you.

There are several credit repair agencies who work with people wanting to secure after bankruptcy credit. They will not only look over your credit report and work with you to correct any mistakes they will also assist you with getting credit.

One way to receive after bankruptcy credit is to apply for a secured credit card. A secured credit card is offered to people who have had credit difficulties in the past. It works very well for people who need after bankruptcy credit.

The process is fairly simple. You apply for the credit card, which will be a major credit card, and you give the credit card company a deposit. This deposit will reflect your spending limit on the card. The credit card company sees this as a safe way to offer after bankruptcy credit because the funds placed on the card are covered in the event you fail to make payments.

This type of arrangement is also beneficial in that it helps you rebuild after bankruptcy credit. If you make the payments in full on time youll soon have a good reference on your credit report.


http://bankruptcy-guide-to.com/a/327681/After+Bankruptcy+Credit++%2314.html

Bankruptcies #28

Bankruptcies

I have a confession to make. I'm in way over my head when it comes to debt. It's my own fault and I admit that. For several years, I couldn't afford to buy anything I wanted, so I paid with plastic. Little did I know that decision would come back to haunt me. I owe close to $20,000. My credit score is very high and I am very proud of that. I live paycheck to paycheck, not always have the slightest clue how I will pay my bills each month. And I'll also admit that last year, when I heard that the laws for bankruptcies were changing, I contemplated filing. I hated the mere thought of contemplating something that I knew would hurt my excellent credit. As the deadline for filing bankruptcies before the new law approached, my husband and I debated for days. In the end, we decided to not do it. I realized that it was our own carelessness that had gotten us into debt and I should accept responsibility for it. Our best friends however, chose to file while only being in debt a few thousand. What I found exceptionally
irritating was the fact that right before they filed, they purchased two brand new cars and went on a cruise. Basically, since they charged the cruise, they didn't pay a cent for it. To me, that's the same concept as stealing.

The amount of bankruptcies in 2005 jumped almost 30% as people rushed to get their filings completed before the new laws took hold. Personal bankruptcies totaled almost 2.1 million across the country. Those statistics make it the largest number of bankruptcies filed in any 12 month period in our history. That's scary. Think about that - 2.1 million people found themselves in financial trouble last year. Everyone who filed has their own reasons, whether it be credit card debt, job loss or medical bills. The list of reasons goes on for miles. As a matter of fact, high medical bills are the main reason for the large number of bankruptcies. Let's face it, most people do not have adequate health care. All it takes is for someone to get hospitalized or ill and suddenly they find themselves in severe debt. That's worse than scary, it's sad.

I understand the need for the new laws, I really do. That doesn't mean I agree with them in every case. The reason that laws are changing is because too many people were taking advantage of filing bankruptcies. They'd charge up their credit cards with new furniture purchases, exotic vacations, and many things they absolutely had no true need for. Then, they'd file for bankruptcy and poof - their money woes were over. On the other hand, since the new laws have gone into effect, the people who face overwhelming debts that could not be controlled are facing more hurdles in order to get a fresh start. Is that fair? Of course not. But, as you know, it only takes one person to ruin it for everyone else. And lots of people did.

If the main reason for the onset of bankruptcies is high medical bills, why doesn't the government take a look at altering those issues? If credit card companies are complaining that they don't get paid when people file for bankruptcy, why give people such a high credit line? Sure, many bankruptcies could be avoided with some common sense usage, that's for certain. But what about those who really are struggling? Who is looking out for them?


http://bankruptcy-guide-to.com/a/344709/Bankruptcies++%2328.html