Though it sounds like an easy and attractive solution for one's financial problems, bankruptcy should be the last option any individual should resort to. It can cause enormous damage, not only to the individual's credit report, but also to his or her social standing and reputation.
There are quite a few alternatives to filing for bankruptcy.
Negotiating with the creditors is one of the alternatives. Creditors know that the reason an individual files for bankruptcy is due to his or her inability to pay off excessive debt. Instead of risking losing everything in a bankruptcy case, most creditors would be more than willing to negotiate in order to recover at least a portion of what the individual owes them. Another advantage of negotiation is that it will also buy the individual some time to allow him to rebuild his finances.
Debt consolidation is another alternative. This method consists of the debtor borrowing one low interest loan from a lender, typically a bank, to pay off other high interest debts like credit cards, for example. This allows him to replace multiple high interest loans with a single low interest loan. This makes the debt easier to repay since the debtor only has to make one payment. Also, since the loan is a low interest one, it is possible for the debtor to pay it back faster by applying more of his monthly payment against the principal of the loan.
The best alternative by far is smart money management. The reason people fall into debt is because they spend more than they earn. The most logical solution would be to reduce monthly expenditure to set aside more money to pay off one?s debts. Budgeting your money and constantly finding ways, sometimes innovative ones, to reduce your monthly expenses is the best way to repay all your debts without having to file for bankruptcy.
http://www.content.onlypunjab.com/Article/Alternatives-To-Filing-For-Bankruptcy/4200320092003318649
Thursday, October 4, 2007
Declaring Personal Bankruptcy
Bankruptcy is defined as a legally declared inability or incapability of an individual or organization to pay their creditors. Personal bankruptcy is an option limited to individuals who are bankrupt and does not include organizations or companies.
The main objective behind filing a bankruptcy is to absolve financial debts and make a fresh start. Individuals can file for personal bankruptcy under chapter 7 of the bankruptcy act after they take a credit counseling course, completed an approved financial management course before discharge and after passing the ?means test?.
Debtors filing Chapter 7 or Chapter 13 bankruptcy must present a copy of a tax return or transcription of a tax return of the period for which the return was most recently due to the trustee, at least seven days before the 341 meeting
The documentation required for filing for personal bankruptcy includes a list of creditors, detailed description of current income, current personal expenses, and an identification photograph. Under the new bankruptcy laws a person also has to submit a certificate of counseling and a proof of income for the last six months. Proof of income includes copy of paycheck, a pay stub, bank statements, rental agreements, books and records, or any other evidence of income a person has received within six months of filing. The last 60 days worth of paycheck stubs must also be filed along with the bankruptcy paperwork in the bankruptcy court.
A statement of monthly net income and any anticipated increase in income after the filing should also be mentioned. All the tax returns or transcripts for the previous four (4) tax years are to be submitted. Tax returns that were not filed during the bankruptcy case will also be needed. Other documents include copies of deeds, mortgages and titles to vehicles, copy of the individual?s automobile financing agreement and any creditor?s mail that the person has received within the last 90 days before filing. Copy of security agreements with secured creditors and copies of divorce decrees, property settlement agreements, separation agreements and child support orders also have to be included along with an application for personal bankruptcy. It is always advisable to contact an attorney before filing for personal bankruptcy.
http://www.content.onlypunjab.com/Article/Declaring-Personal-Bankruptcy/4200320092003318650
The main objective behind filing a bankruptcy is to absolve financial debts and make a fresh start. Individuals can file for personal bankruptcy under chapter 7 of the bankruptcy act after they take a credit counseling course, completed an approved financial management course before discharge and after passing the ?means test?.
Debtors filing Chapter 7 or Chapter 13 bankruptcy must present a copy of a tax return or transcription of a tax return of the period for which the return was most recently due to the trustee, at least seven days before the 341 meeting
The documentation required for filing for personal bankruptcy includes a list of creditors, detailed description of current income, current personal expenses, and an identification photograph. Under the new bankruptcy laws a person also has to submit a certificate of counseling and a proof of income for the last six months. Proof of income includes copy of paycheck, a pay stub, bank statements, rental agreements, books and records, or any other evidence of income a person has received within six months of filing. The last 60 days worth of paycheck stubs must also be filed along with the bankruptcy paperwork in the bankruptcy court.
A statement of monthly net income and any anticipated increase in income after the filing should also be mentioned. All the tax returns or transcripts for the previous four (4) tax years are to be submitted. Tax returns that were not filed during the bankruptcy case will also be needed. Other documents include copies of deeds, mortgages and titles to vehicles, copy of the individual?s automobile financing agreement and any creditor?s mail that the person has received within the last 90 days before filing. Copy of security agreements with secured creditors and copies of divorce decrees, property settlement agreements, separation agreements and child support orders also have to be included along with an application for personal bankruptcy. It is always advisable to contact an attorney before filing for personal bankruptcy.
http://www.content.onlypunjab.com/Article/Declaring-Personal-Bankruptcy/4200320092003318650
Bad Credit And Personal Bankruptcy
People, who are not able to pay their creditors back due to lack of resources, file for personal bankruptcy. After being declared legally bankrupt, a person's financial record becomes public, which means that anyone who wants to know about the financial status of the person are provided access to those records.
Although a bankrupt person is absolved from past financial burdens, the financial future of that person can become bleak. This is because the individual will get a bad credit rating and will be unable to secure any type of loan at a low rate of interest. In a market heavily dependent on credit ratings, a bad credit report can make an indelible mark on an individual's financial reputation thus impacting the financial plans that he or she may have for the future.
Negative information in a person's credit report such as bankruptcy can only be erased by the passage of time. A consumer reporting company can report very accurate and precise bankruptcy information for 10 years after the bankruptcy is filed. Even if a person files for bankruptcy and dismisses it before it is discharged, the credit report of that person will mention that he or she has filed for bankruptcy.
However, this does not mean that a bankrupt person can never get loans again. It only means that the interest charged on credit cards and loans will be higher than what a person with good credit ratings can get. There are many steps that individuals who have filed for bankruptcy can take in order to improve their credit rating. It is important to obtain a copy of the credit report from reporting companies such as, Experian, Transunion and Equifax and review them carefully for inaccuracies or mistakes. If there are mistakes, then the agencies have 30 days to investigate and correct the alleged mistake
If there are no errors in a person?s credit report after filing for bankruptcy, then the credit rating can be improved by starting to build a good reputation taking steps like using only the secured credit card which is issued after bankruptcy, using the card to make small transactions and ensuring timely credit card payments. Bankrupt individuals should also discharge any student, car or mortgage on time. A bad credit rating cannot improve overnight. It takes a lot of honesty and care on the part of the bankrupt person and will slowly but surely improve if the steps mentioned above are taken.
http://www.content.onlypunjab.com/Article/Bad-Credit-And-Personal-Bankruptcy/4200320092003318651
Although a bankrupt person is absolved from past financial burdens, the financial future of that person can become bleak. This is because the individual will get a bad credit rating and will be unable to secure any type of loan at a low rate of interest. In a market heavily dependent on credit ratings, a bad credit report can make an indelible mark on an individual's financial reputation thus impacting the financial plans that he or she may have for the future.
Negative information in a person's credit report such as bankruptcy can only be erased by the passage of time. A consumer reporting company can report very accurate and precise bankruptcy information for 10 years after the bankruptcy is filed. Even if a person files for bankruptcy and dismisses it before it is discharged, the credit report of that person will mention that he or she has filed for bankruptcy.
However, this does not mean that a bankrupt person can never get loans again. It only means that the interest charged on credit cards and loans will be higher than what a person with good credit ratings can get. There are many steps that individuals who have filed for bankruptcy can take in order to improve their credit rating. It is important to obtain a copy of the credit report from reporting companies such as, Experian, Transunion and Equifax and review them carefully for inaccuracies or mistakes. If there are mistakes, then the agencies have 30 days to investigate and correct the alleged mistake
If there are no errors in a person?s credit report after filing for bankruptcy, then the credit rating can be improved by starting to build a good reputation taking steps like using only the secured credit card which is issued after bankruptcy, using the card to make small transactions and ensuring timely credit card payments. Bankrupt individuals should also discharge any student, car or mortgage on time. A bad credit rating cannot improve overnight. It takes a lot of honesty and care on the part of the bankrupt person and will slowly but surely improve if the steps mentioned above are taken.
http://www.content.onlypunjab.com/Article/Bad-Credit-And-Personal-Bankruptcy/4200320092003318651
Fresh Start Loans To Overcome Bankruptcy!
Fresh start loans can provide the funds needed to get back on track after financial failure and can help you recover your credit score and improve your credit history.
The financial industry has created fresh start loans because more and more Americans get in financial problems like these due to the misuse of credit cards and other financial products. Getting finance after a bankruptcy process is extremely difficult due to the bad credit it implies. However, these loans can provide funds and at the same time aid you in recovering your credit so you can resort to traditional forms of financing again.
Why Are Fresh Start Loans Ideal For Those With Past Bankruptcies
Fresh Start Loans are provided by non traditional financial institutions that have found a special niche for a new loan product. These loans are meant for those who need financing to start over, to recover their credit after bankruptcy. There is no particular purpose to this loans but the idea is that they should be used for starting over a new financial life free from missed or late payments, defaults or bankruptcies.
These loans provide suitable loan amounts under the form of secured or unsecured financing. The most important loan characteristics are the terms flexibility and the easiness on the requirements that are essential for those that have gone through a bankruptcy process and need to make a fresh start. These loans have little credit and income requirements for approval and provide financing with low monthly installments as the repayment schedules can be stretched to meet the borrower’s needs and budget.
Bankruptcy doesn’t have to be an obstacle if you don’t let it. With Fresh start loans you’ll be able to start over because they’ll provide the needed funds even if you’ve gone through a bankruptcy recently. They are an essential tool for those who want to overcome the consequences of bankruptcy and have failed to obtain finance through other means.
How Does Credit Recovery Occur After Bankruptcy
Credit recovery after bankruptcy is a process that can happen without intervention as long as no delinquencies are recorded into your credit history. As bills payments and debt reduction occur, nothing but good input gets recorded into your credit report thus slowly increasing your credit score. Since the last six months of the credit history are the most important ones, avoiding delinquencies and letting time go by is essential.
However, the monthly payments on a new loan can accelerate this process and fresh start loans are particularly good for this purpose especially if the applicant has a past bankruptcy on his credit history. An open line of credit or a loan that gets repaid in a timely manner with no late payments and no missed payments, shows as a very positive input on your credit report and will boost credit recovery significantly. That’s why these special loans that are awarded despite bankruptcy can contribute to credit recovery.
http://www.content.onlypunjab.com/Article/Fresh-Start-Loans-To-Overcome-Bankruptcy-/4200320092003339898
The financial industry has created fresh start loans because more and more Americans get in financial problems like these due to the misuse of credit cards and other financial products. Getting finance after a bankruptcy process is extremely difficult due to the bad credit it implies. However, these loans can provide funds and at the same time aid you in recovering your credit so you can resort to traditional forms of financing again.
Why Are Fresh Start Loans Ideal For Those With Past Bankruptcies
Fresh Start Loans are provided by non traditional financial institutions that have found a special niche for a new loan product. These loans are meant for those who need financing to start over, to recover their credit after bankruptcy. There is no particular purpose to this loans but the idea is that they should be used for starting over a new financial life free from missed or late payments, defaults or bankruptcies.
These loans provide suitable loan amounts under the form of secured or unsecured financing. The most important loan characteristics are the terms flexibility and the easiness on the requirements that are essential for those that have gone through a bankruptcy process and need to make a fresh start. These loans have little credit and income requirements for approval and provide financing with low monthly installments as the repayment schedules can be stretched to meet the borrower’s needs and budget.
Bankruptcy doesn’t have to be an obstacle if you don’t let it. With Fresh start loans you’ll be able to start over because they’ll provide the needed funds even if you’ve gone through a bankruptcy recently. They are an essential tool for those who want to overcome the consequences of bankruptcy and have failed to obtain finance through other means.
How Does Credit Recovery Occur After Bankruptcy
Credit recovery after bankruptcy is a process that can happen without intervention as long as no delinquencies are recorded into your credit history. As bills payments and debt reduction occur, nothing but good input gets recorded into your credit report thus slowly increasing your credit score. Since the last six months of the credit history are the most important ones, avoiding delinquencies and letting time go by is essential.
However, the monthly payments on a new loan can accelerate this process and fresh start loans are particularly good for this purpose especially if the applicant has a past bankruptcy on his credit history. An open line of credit or a loan that gets repaid in a timely manner with no late payments and no missed payments, shows as a very positive input on your credit report and will boost credit recovery significantly. That’s why these special loans that are awarded despite bankruptcy can contribute to credit recovery.
http://www.content.onlypunjab.com/Article/Fresh-Start-Loans-To-Overcome-Bankruptcy-/4200320092003339898
Life after Bankruptcy
Bankruptcy is the last resort for any debtor wherein he/she legally declares the inability to pay back the debt owed. In most cases bankruptcy is initiated by the debtor or the organization. However creditors can also request bankruptcy in an effort to get back what they are owed. After filing bankruptcy you can choose the life you want to live – you can either re-build your finances or plummet deeper into the abyss.
Follow The Checklist below and You're Going to Emerge Unscathed Even after Bankruptcy
• Restrict or if possible STOP using credit cards
• If required get a secured bankruptcy credit card an pay your dues regularly
• Wait for two years before availing mortgage or even bankruptcy car loan to get the best interest rates
• Get copies off your credit reports and ensure that your accounts are listed as discharged
Bankruptcy Loan – Getting a Loan after Bankruptcy
Availing small and easily repayable bankruptcy loan – be it bankruptcy home loan or even bankruptcy car loan, will help you not just deal with your financial obligations but it will also help you rebuild your credit rating. A small bankruptcy personal loan is the ideal solution to repair your credit status. However there are some facts about bankruptcy loans that you must be aware of.
Firstly, bankruptcy loans are recommended only for people who have declared themselves bankrupt and only after their case has been discharged, their creditors have been paid. You have to wait for at least 2 years for your bankruptcy home loan or bankruptcy car loan application to be approved without unnecessary delay. Generally lenders perceive bankrupts as threats and don’t particularly want to risk lending to a recently discharged bankrupt. If you have chosen Chapter 7 Bankruptcy you must wait for 2 years to apply for a loan and in case of Chapter 13 Bankruptcy you need to first pay the full amount to your creditors before applying for a loan.
Can You Get A Credit Card After Bankruptcy?
You owned a home and hardly ever defaulted on your monthly payments. Your credit report sparkled. But unfortunate health circumstances forced you out of your job and you had to file for bankruptcy…Today you are looking for bankruptcy credit card without being charged outrageous interest rates. So what are you’re choices? You can choose between secured credit card for bankruptcy and unsecured credit card after bankruptcy.
Secured bankruptcy credit card is secured by a savings account you establish with your creditor. This savings account works as collateral for your credit limit. If you default on your payment your creditor will take money from the savings account. If you’re looking for a risk free credit card after bankruptcy – unsecured bankruptcy credit card is the option for you as it does not require any collateral.
Many people think about filing bankruptcy but the fear of life after bankruptcy hold them back. The information offered in this article aims to enlighten you on what you can expect when you have filed for bankruptcy.
http://www.content.onlypunjab.com/Article/Life-after-Bankruptcy/4200320092003350322
Follow The Checklist below and You're Going to Emerge Unscathed Even after Bankruptcy
• Restrict or if possible STOP using credit cards
• If required get a secured bankruptcy credit card an pay your dues regularly
• Wait for two years before availing mortgage or even bankruptcy car loan to get the best interest rates
• Get copies off your credit reports and ensure that your accounts are listed as discharged
Bankruptcy Loan – Getting a Loan after Bankruptcy
Availing small and easily repayable bankruptcy loan – be it bankruptcy home loan or even bankruptcy car loan, will help you not just deal with your financial obligations but it will also help you rebuild your credit rating. A small bankruptcy personal loan is the ideal solution to repair your credit status. However there are some facts about bankruptcy loans that you must be aware of.
Firstly, bankruptcy loans are recommended only for people who have declared themselves bankrupt and only after their case has been discharged, their creditors have been paid. You have to wait for at least 2 years for your bankruptcy home loan or bankruptcy car loan application to be approved without unnecessary delay. Generally lenders perceive bankrupts as threats and don’t particularly want to risk lending to a recently discharged bankrupt. If you have chosen Chapter 7 Bankruptcy you must wait for 2 years to apply for a loan and in case of Chapter 13 Bankruptcy you need to first pay the full amount to your creditors before applying for a loan.
Can You Get A Credit Card After Bankruptcy?
You owned a home and hardly ever defaulted on your monthly payments. Your credit report sparkled. But unfortunate health circumstances forced you out of your job and you had to file for bankruptcy…Today you are looking for bankruptcy credit card without being charged outrageous interest rates. So what are you’re choices? You can choose between secured credit card for bankruptcy and unsecured credit card after bankruptcy.
Secured bankruptcy credit card is secured by a savings account you establish with your creditor. This savings account works as collateral for your credit limit. If you default on your payment your creditor will take money from the savings account. If you’re looking for a risk free credit card after bankruptcy – unsecured bankruptcy credit card is the option for you as it does not require any collateral.
Many people think about filing bankruptcy but the fear of life after bankruptcy hold them back. The information offered in this article aims to enlighten you on what you can expect when you have filed for bankruptcy.
http://www.content.onlypunjab.com/Article/Life-after-Bankruptcy/4200320092003350322
Debt - Leveraging Your Way Into Bankruptcy
'Back-in-the-day', as they say, when I was a young lad in my early twenties, I was given some fundamental advice on getting all I could out of life. It didn't make a whole lot of sense to me then, since it actually went against everything I'd experienced up until that time. 'Debt', as I was told, was now the preferred means of rapid asset acquisition and even good credit, no less, which meant approval for even more debt. The experts were preaching 'the more debt, the better'. It provided the opportunity to acquire and new home, a new car, new furniture, new appliances, and exotic vacations, to name just a few. It didn't make sense to me, simply because I knew it had taken my father and grandfather nearly a lifetime to purchase some of those things, since they had to save nearly all of the cost before even considering the purchase. So I'm thinking, "what is going on with this new approach to financial freedom?" And, exactly what kind of 'leverage' is it that I'm creating with this ownership of massive debt?
Frankly, I never totally bought into that revolutionary new philosophy. I settled instead for a much less stressful lifestyle, where paying off my credit card each year, utilizing my long awaited federal tax refund, was challenging enough. I simply never understood the life of constant worry over debt service that so many were willing to sign up for, just to have a few bigger and more expensive things.
The revolution may have started with my generation in the 1960s, but it gained enough momentum to become what had to be considered a national crisis. With debt and bankruptcy reaching all-time highs, and savings virtually non-existent, it became quite obvious to me that this so-called 'debt leverage' needed some rethinking. The truth is that using debt to create prosperity was a myth aimed at the working class. The fact is that the 'wealthy' had a much better understanding of the risks and never used that method nearly as much as we were led to believe.
According to a recent USA Today article about debt, 78% of Baby Boomers (my generation) have mortgage debt, 59% have credit card debt, and 56% have car payments. Financial expert, Dave Ramsey recently offered this observation: "Debt is dumb. Most normal people are just plain broke because they are in debt up to their eyeballs with no hope of help. If you're in debt, then you're a slave because you do not have the freedom to use your money to help change your family tree. It takes a lot of will, discipline, courage and help to slay the debt monster. But it can be done. Imagine how much you could put toward retirement if you just didn't have a stinking car payment."
The myth was that we should use OPM (other people's money) to gain prosperity. While that style may work for some, the average John Doe simply doesn't have the expertise, discipline or patience to make it a viable strategy. Ideally, when exposed to debt-promoting hype, one should always consider the risk. It's seldom that the advantages of newly acquired assets outweigh the risks associated with the additional debt.
So, what happens when the debt is so out of control that it's turned your life into a living nightmare? The unfortunate reality is that stress and anxiety can ruin your health, devastate your job, destroy your marriage and steal your peace of mind. Not withstanding personal loans from family or friends, there are generally only two remaining options available to those who want to continue breathing: Bankruptcy or professional debt counseling.
One should not be fooled with the notion that bankruptcy is just a simple way to start over. The fact is that it's a life-changing event that can cause life-long damage. Very few who have been through the process would report that it's a painless wiping-clean of the slate. In fact, it's listed in the top five life-altering negative events that we can go through, along with divorce, severe illness, disability, and loss of a loved one. It's an event that can leave very deep wounds both to the psyche and the credit report.
Chapter 7 is total bankruptcy, and involves liquidating all assets that are not exempt. Exempt property may include cars, work-related tools and basic household furnishings. It stays on your credit report for 10 years. Chapter 13 is more like a payment plan, and allows you, if you have a regular income and limited debt, to keep property, such as a mortgaged house or car, that you otherwise might lose. However, it still stays on your credit report for seven years. Bankruptcy, regardless of the type, is for life. Loan applications and many job applications ask if you have ever filed for bankruptcy. Ever! If you lie to get a loan because your bankruptcy is very old, technically you have committed criminal fraud.
Fortunately, most bankruptcy cases can be avoided with proper help, such as certified professional counselors, and in the end will help to get your feet back on solid, credit worthy ground. The process will be painful, but bankruptcy, foreclosure, and lawsuits are much more painful.
http://www.content.onlypunjab.com/Article/Debt---Leveraging-Your-Way-Into-Bankruptcy/4200320092003347375
Frankly, I never totally bought into that revolutionary new philosophy. I settled instead for a much less stressful lifestyle, where paying off my credit card each year, utilizing my long awaited federal tax refund, was challenging enough. I simply never understood the life of constant worry over debt service that so many were willing to sign up for, just to have a few bigger and more expensive things.
The revolution may have started with my generation in the 1960s, but it gained enough momentum to become what had to be considered a national crisis. With debt and bankruptcy reaching all-time highs, and savings virtually non-existent, it became quite obvious to me that this so-called 'debt leverage' needed some rethinking. The truth is that using debt to create prosperity was a myth aimed at the working class. The fact is that the 'wealthy' had a much better understanding of the risks and never used that method nearly as much as we were led to believe.
According to a recent USA Today article about debt, 78% of Baby Boomers (my generation) have mortgage debt, 59% have credit card debt, and 56% have car payments. Financial expert, Dave Ramsey recently offered this observation: "Debt is dumb. Most normal people are just plain broke because they are in debt up to their eyeballs with no hope of help. If you're in debt, then you're a slave because you do not have the freedom to use your money to help change your family tree. It takes a lot of will, discipline, courage and help to slay the debt monster. But it can be done. Imagine how much you could put toward retirement if you just didn't have a stinking car payment."
The myth was that we should use OPM (other people's money) to gain prosperity. While that style may work for some, the average John Doe simply doesn't have the expertise, discipline or patience to make it a viable strategy. Ideally, when exposed to debt-promoting hype, one should always consider the risk. It's seldom that the advantages of newly acquired assets outweigh the risks associated with the additional debt.
So, what happens when the debt is so out of control that it's turned your life into a living nightmare? The unfortunate reality is that stress and anxiety can ruin your health, devastate your job, destroy your marriage and steal your peace of mind. Not withstanding personal loans from family or friends, there are generally only two remaining options available to those who want to continue breathing: Bankruptcy or professional debt counseling.
One should not be fooled with the notion that bankruptcy is just a simple way to start over. The fact is that it's a life-changing event that can cause life-long damage. Very few who have been through the process would report that it's a painless wiping-clean of the slate. In fact, it's listed in the top five life-altering negative events that we can go through, along with divorce, severe illness, disability, and loss of a loved one. It's an event that can leave very deep wounds both to the psyche and the credit report.
Chapter 7 is total bankruptcy, and involves liquidating all assets that are not exempt. Exempt property may include cars, work-related tools and basic household furnishings. It stays on your credit report for 10 years. Chapter 13 is more like a payment plan, and allows you, if you have a regular income and limited debt, to keep property, such as a mortgaged house or car, that you otherwise might lose. However, it still stays on your credit report for seven years. Bankruptcy, regardless of the type, is for life. Loan applications and many job applications ask if you have ever filed for bankruptcy. Ever! If you lie to get a loan because your bankruptcy is very old, technically you have committed criminal fraud.
Fortunately, most bankruptcy cases can be avoided with proper help, such as certified professional counselors, and in the end will help to get your feet back on solid, credit worthy ground. The process will be painful, but bankruptcy, foreclosure, and lawsuits are much more painful.
http://www.content.onlypunjab.com/Article/Debt---Leveraging-Your-Way-Into-Bankruptcy/4200320092003347375
Ways To Consolidate Debt
People are up to their eyeballs in debt. With interest rates rising, many people are experiencing severe difficulties keeping up with their credit card and home loan obligations. The problem has been fueled, in large part, by the extremely low adjustable rate mortgages which many people took advantage of during the past few years to purchase homes that they could really only afford at those rate levels. Unfortunately, those rates have now increased, which means that the monthly payment obligations have increased substantially.
The result of these events has been devestating for many, and you should not feel isolated or alone if this is your situation. The problem is rampant, and many people are in the same boat looking for ways to weather the storm. Specifically, people are living in houses that they can't really afford. On top of that, the housing market has cooled which means that they can't sell the houses at prices that would allow them to pay off the adjustable rate mortgages. Accordingly, desparate to keep up with their adjustable mortgages as much as possible, people are forced to use other forms of credit to pay for their daily needs, namely credit cards with astronomical interest rates. At the end of the day, most or all available cash goes to the adjustable rate mortgage, which leaves amounts still owed on the mortgage plus additional amounts owed to the credit card companies at much higher rates.
While there are no great options, the best may be for people to attempt to consolidate their debts into one, with the lowest interest rate possible. This maybe a home equity loan, which will typically carry a much lower interest rate than those charged by the credit card companies. Other advantages of home equity loans are that they reduce the number of lenders to whom payments are owed, and the interest paid on the loans will be deductible for tax purposes.
If the home equity loan is not available because there is no equity left in the home, people should look for other single sources of loans with the lowest available interest rates. This will consolidate all debt with one lender at one rate (the lowest available), simplifying the situation for the borrower.
Finally, of course, in the process of consolidating debts with a home equity loan or other form of debt, all efforts should be made to negotiate with your existing lenders to eliminate the debts owed by paying some discounted amount. If, take for example, you owe $100,000, see if you the lender will accept something less, like $50,000, to resolve the debt completely. While no lender wants to do that, they are often willing to negotiate such arrangements simply for the sake of being done with the loan and not incurring any greater losses.
Hope this helps.
http://www.content.onlypunjab.com/Article/Ways-To-Consolidate-Debt/4200320092003352853
The result of these events has been devestating for many, and you should not feel isolated or alone if this is your situation. The problem is rampant, and many people are in the same boat looking for ways to weather the storm. Specifically, people are living in houses that they can't really afford. On top of that, the housing market has cooled which means that they can't sell the houses at prices that would allow them to pay off the adjustable rate mortgages. Accordingly, desparate to keep up with their adjustable mortgages as much as possible, people are forced to use other forms of credit to pay for their daily needs, namely credit cards with astronomical interest rates. At the end of the day, most or all available cash goes to the adjustable rate mortgage, which leaves amounts still owed on the mortgage plus additional amounts owed to the credit card companies at much higher rates.
While there are no great options, the best may be for people to attempt to consolidate their debts into one, with the lowest interest rate possible. This maybe a home equity loan, which will typically carry a much lower interest rate than those charged by the credit card companies. Other advantages of home equity loans are that they reduce the number of lenders to whom payments are owed, and the interest paid on the loans will be deductible for tax purposes.
If the home equity loan is not available because there is no equity left in the home, people should look for other single sources of loans with the lowest available interest rates. This will consolidate all debt with one lender at one rate (the lowest available), simplifying the situation for the borrower.
Finally, of course, in the process of consolidating debts with a home equity loan or other form of debt, all efforts should be made to negotiate with your existing lenders to eliminate the debts owed by paying some discounted amount. If, take for example, you owe $100,000, see if you the lender will accept something less, like $50,000, to resolve the debt completely. While no lender wants to do that, they are often willing to negotiate such arrangements simply for the sake of being done with the loan and not incurring any greater losses.
Hope this helps.
http://www.content.onlypunjab.com/Article/Ways-To-Consolidate-Debt/4200320092003352853
Filing Bankruptcy in Edmonton and the Impact on Credit
There are many misconceptions about how a bankruptcy impacts one’s credit. The largest of which is the belief that by filing for bankruptcy in Canada you eliminate any future ability to borrow money. This is not the case. Realistically there is only one restriction on borrowing money that exists, and that is while you are in bankruptcy (i.e. prior to receiving a discharge) you are not eligible to borrow $500.00 or more without informing the lending institution that you have not been yet been discharged from bankruptcy.
Now this doesn’t mean that every lender is required to loan you money, nor that loans will be easy to get after filing a bankruptcy but with a little effort loans are easier to obtain than most people initially assume. When looking for a loan it is important to remember that when institutions are looking to lend money, a number of factors are considered, including your credit history, your income, how stable your income is, what types of assets you own, the debt load you carry and how much money is left over in a normal month after you have paid all you living costs. The important thing to note is that when you look at this list the only item that is negatively affected by a bankruptcy is your credit history. Funny enough, some of the items (i.e. your debt load and cash flow) now appear more positive. So what most people fail to realize, to the lending institution you are in a much less risky position as a result of filing for personal bankruptcy than you would have been if hadn’t filed.
Despite being in a less risky financial position, obtaining credit is going to take a little work as you will not only have to help the bank to recognize that you are in a less risky position, but more importantly you will need to help them to realize that you have learned from the bankruptcy and are not likely to follow the same path in the future. While addressing these issues is largely going to depend on your personal situation, we always suggest you:
1. Develop a regular, disciplined habit of saving prior to applying for the loan;
2. When applying for the loan ask to speak with a person and not rely on the generic application forms;
3. Be open an honest with the bank representative about the bankruptcy, the events that led up to the bankruptcy and what has changed so these events won’t cause the same issues again.
For further information it is a good idea to contact a licensed trustee or email me directly. Either way we will be able to determine the best way to deal with your existing debt and develop strategies to help get life back on track as quickly as possible.
http://www.content.onlypunjab.com/Article/Filing-Bankruptcy-in-Edmonton-and-the-Impact-on-Credit/4200320092003355422
Now this doesn’t mean that every lender is required to loan you money, nor that loans will be easy to get after filing a bankruptcy but with a little effort loans are easier to obtain than most people initially assume. When looking for a loan it is important to remember that when institutions are looking to lend money, a number of factors are considered, including your credit history, your income, how stable your income is, what types of assets you own, the debt load you carry and how much money is left over in a normal month after you have paid all you living costs. The important thing to note is that when you look at this list the only item that is negatively affected by a bankruptcy is your credit history. Funny enough, some of the items (i.e. your debt load and cash flow) now appear more positive. So what most people fail to realize, to the lending institution you are in a much less risky position as a result of filing for personal bankruptcy than you would have been if hadn’t filed.
Despite being in a less risky financial position, obtaining credit is going to take a little work as you will not only have to help the bank to recognize that you are in a less risky position, but more importantly you will need to help them to realize that you have learned from the bankruptcy and are not likely to follow the same path in the future. While addressing these issues is largely going to depend on your personal situation, we always suggest you:
1. Develop a regular, disciplined habit of saving prior to applying for the loan;
2. When applying for the loan ask to speak with a person and not rely on the generic application forms;
3. Be open an honest with the bank representative about the bankruptcy, the events that led up to the bankruptcy and what has changed so these events won’t cause the same issues again.
For further information it is a good idea to contact a licensed trustee or email me directly. Either way we will be able to determine the best way to deal with your existing debt and develop strategies to help get life back on track as quickly as possible.
http://www.content.onlypunjab.com/Article/Filing-Bankruptcy-in-Edmonton-and-the-Impact-on-Credit/4200320092003355422
Bankruptcy Alternative - Is Bankruptcy Still Your Best Bet?
No chance of repaying your debts, no assets to pledge for any more loans, creditors are threatening action against you – Does this sound like a situation you’re in? You probably feel that bankruptcy is the best option for you but have you considered the long term effects of bankruptcy? You cannot obtain credit of £500 or more either alone or jointly without disclosing your bankruptcy. You can’t hold certain public offices, act as a company’s director or carry on business (directly or indirectly) in a name which is different from that in which you were made bankrupt.
It’s best to Avoid Bankruptcy!
Bankruptcy is not reversible and it stays with you for years to come. However bankruptcy alternative can help avoid the harmful effects of bankruptcy and gives you a sense of achievement that you have dealt with your debts. You must fully explore bankruptcy alternatives and avail bankruptcy help if necessary to make the best informed choice for your needs.
Bankruptcy Alternative - Do It Yourself Guide
1. Make a note of your monthly expenditure and come up with a realistic budget
2. Buy only on cash basis, STOP using credit cards
3. Don’t believe all the ads on TV and magazines, research and find the best product for your needs
4. Deal with your debts, begin today
5. Speak to your creditors or avail services of debt management experts to negotiate with your creditors
6. Find out more about IVA, CVA, consolidation loans
7. Learn to save and plan for your future
Bankruptcy Alternative – What Are Your Options?
IVA: This is a legally binding arrangement between you and your creditors. Insolvency Practitioner (IP) will help set up your IVA, negotiates with your creditors, freeze your high interest rates and help you with a single affordable monthly payment so you can be debt free in 5 years or less. You will be protected from any further action by your creditors and at the end of your IVA remaining debt will be written off.
Debt Consolidation Loan: You can choose to combine all your debts into one consolidated loan; you will benefit with lower interest rates and you will only have to make one affordable payment every month instead of dealing with a number of high interest payments.
Credit Counseling: There are a number of credit counseling agencies which will help negotiate lower interest rates and comfortable repayment options to suit your pocket. Credit counselors will offer all the information and help you need to consolidate your debts.
Informal Arrangement with Your Creditors: You could also opt for an “Out of Court Settlement” with your creditors and pay a lesser amount or make your payments over a longer period of time.
Whatever option you choose as a good bankruptcy debt relief option for your needs, act TODAY! There are a number of online credit counseling services which can help you with your queries. If you chose to read this article, it means that you are interested in bankruptcy alternative and if you are interested in finding alternatives for bankruptcy you have come to the right place as must be demonstrated by what all you have read till now.
http://www.content.onlypunjab.com/Article/Bankruptcy-Alternative---Is-Bankruptcy-Still-Your-Best-Bet-/4200320092003350310
It’s best to Avoid Bankruptcy!
Bankruptcy is not reversible and it stays with you for years to come. However bankruptcy alternative can help avoid the harmful effects of bankruptcy and gives you a sense of achievement that you have dealt with your debts. You must fully explore bankruptcy alternatives and avail bankruptcy help if necessary to make the best informed choice for your needs.
Bankruptcy Alternative - Do It Yourself Guide
1. Make a note of your monthly expenditure and come up with a realistic budget
2. Buy only on cash basis, STOP using credit cards
3. Don’t believe all the ads on TV and magazines, research and find the best product for your needs
4. Deal with your debts, begin today
5. Speak to your creditors or avail services of debt management experts to negotiate with your creditors
6. Find out more about IVA, CVA, consolidation loans
7. Learn to save and plan for your future
Bankruptcy Alternative – What Are Your Options?
IVA: This is a legally binding arrangement between you and your creditors. Insolvency Practitioner (IP) will help set up your IVA, negotiates with your creditors, freeze your high interest rates and help you with a single affordable monthly payment so you can be debt free in 5 years or less. You will be protected from any further action by your creditors and at the end of your IVA remaining debt will be written off.
Debt Consolidation Loan: You can choose to combine all your debts into one consolidated loan; you will benefit with lower interest rates and you will only have to make one affordable payment every month instead of dealing with a number of high interest payments.
Credit Counseling: There are a number of credit counseling agencies which will help negotiate lower interest rates and comfortable repayment options to suit your pocket. Credit counselors will offer all the information and help you need to consolidate your debts.
Informal Arrangement with Your Creditors: You could also opt for an “Out of Court Settlement” with your creditors and pay a lesser amount or make your payments over a longer period of time.
Whatever option you choose as a good bankruptcy debt relief option for your needs, act TODAY! There are a number of online credit counseling services which can help you with your queries. If you chose to read this article, it means that you are interested in bankruptcy alternative and if you are interested in finding alternatives for bankruptcy you have come to the right place as must be demonstrated by what all you have read till now.
http://www.content.onlypunjab.com/Article/Bankruptcy-Alternative---Is-Bankruptcy-Still-Your-Best-Bet-/4200320092003350310
Bad Credit And Bankruptcy Together Are Explosive But
Today there is a great awareness of people’s rights to put the broken bits together and start all over again… but doing things better. As for credit, there are some interesting aspects to take into consideration.
You Have Gone Through Bankruptcy Stress
Some debts discharged, others paid through the sale of assets and you have managed to keep your small home for your family. You want to start over, but with a smudge on your credit report. What now?
The Info On Your Credit Report
Bankruptcy entries will be kept on your credit report for 10 years, by law. And it will stand out like a sore thumb. However, in spite of this smudge, good credit can be aquired after bankruptcy and you will gradually get on your feet again.
What Few People Consider
Any creditor knows that bankruptcy can be filed only once every seven years. So, if you have recently filed for one, they will have nothing to worry about for the next few years. The fear they have of this terrible “B” word is before it happens, since they might get caught in it… but not after it happens.
Other Factors Help Too
For example, if your bankruptcy was due to medical bills, divorce or some event beyond your control, the response of would-be creditors will be surprising. Not as if you hadn’t declared bankruptcy, but they act as extenuating factors.
In Spite Of Bankruptcy
You get a loan. Not a big one, but enough to get started. Now, let’s consider this: You can have bad credit with or without bankruptcy, since this is only one of the motives of your bad financial reputation. So, leaving bankruptcy aside, there are many other things that give you a bad credit report.
A Natural Consequence
Bankruptcy itself is a natural consequence of those debts. The word just means “Too many debts”, to put it very simply. So, the obvious procedure is repair and rebuild.
A Higher Instance
Considering bankruptcy a higher instance of debt, the repair of your credit can and must be carried out in the normal ways. Checking the accuracy of the entries, detecting the lack of correct good entries and the existence of outdated information are the regular things to do.
Rebuild
There is more than one way to rebuild. The natural way is to get a loan with a calculated risk, enough to regain your comfort, be it business or personal ease. This means, using the loan for two reasons: Expansion or growth and rebuilding your credit scoring.
The Other Way
One could call it “artificial”, but it is just as effective and far from cheating the system. It comprises the division of a greater sum into smaller ones, through smaller, shorter loans in succession, which are faster and easier to repay. Thus, you will have more than one loan at a time in different stages of repayment, all helping you to get your good name back.
Oh, and make sure you get those good data filed in your report!
http://www.content.onlypunjab.com/Article/Bad-Credit-And-Bankruptcy-Together-Are-Explosive-But/4200320092003350936
You Have Gone Through Bankruptcy Stress
Some debts discharged, others paid through the sale of assets and you have managed to keep your small home for your family. You want to start over, but with a smudge on your credit report. What now?
The Info On Your Credit Report
Bankruptcy entries will be kept on your credit report for 10 years, by law. And it will stand out like a sore thumb. However, in spite of this smudge, good credit can be aquired after bankruptcy and you will gradually get on your feet again.
What Few People Consider
Any creditor knows that bankruptcy can be filed only once every seven years. So, if you have recently filed for one, they will have nothing to worry about for the next few years. The fear they have of this terrible “B” word is before it happens, since they might get caught in it… but not after it happens.
Other Factors Help Too
For example, if your bankruptcy was due to medical bills, divorce or some event beyond your control, the response of would-be creditors will be surprising. Not as if you hadn’t declared bankruptcy, but they act as extenuating factors.
In Spite Of Bankruptcy
You get a loan. Not a big one, but enough to get started. Now, let’s consider this: You can have bad credit with or without bankruptcy, since this is only one of the motives of your bad financial reputation. So, leaving bankruptcy aside, there are many other things that give you a bad credit report.
A Natural Consequence
Bankruptcy itself is a natural consequence of those debts. The word just means “Too many debts”, to put it very simply. So, the obvious procedure is repair and rebuild.
A Higher Instance
Considering bankruptcy a higher instance of debt, the repair of your credit can and must be carried out in the normal ways. Checking the accuracy of the entries, detecting the lack of correct good entries and the existence of outdated information are the regular things to do.
Rebuild
There is more than one way to rebuild. The natural way is to get a loan with a calculated risk, enough to regain your comfort, be it business or personal ease. This means, using the loan for two reasons: Expansion or growth and rebuilding your credit scoring.
The Other Way
One could call it “artificial”, but it is just as effective and far from cheating the system. It comprises the division of a greater sum into smaller ones, through smaller, shorter loans in succession, which are faster and easier to repay. Thus, you will have more than one loan at a time in different stages of repayment, all helping you to get your good name back.
Oh, and make sure you get those good data filed in your report!
http://www.content.onlypunjab.com/Article/Bad-Credit-And-Bankruptcy-Together-Are-Explosive-But/4200320092003350936
Is Bankruptcy Right For You?
Sometimes things just don't turn out in business as you would wish them to. We don't plan to fail but sometimes it happens. Bankruptcy is a last resort - but you may need to consider it.
Bankruptcy is a very serious ordeal, not something to be thought about lightly. If you are considering filing for bankruptcy, there are a few things you should evaluate first, before you do.
The first thing to consider is your eligibility for Chapter 7 protection. If eligible, it will take a majority of your debt away. The guidelines can be strict, but if you are sincerely in need of such protection, this isn’t out of reach.
Secondly, you need to rethink your alternatives. Filing for bankruptcy can harm your credit drastically- make sure there is no other way out. You can try debt consolidation, or talking to your creditors yourself. If it doesn’t seem like things are working, then it’s time to consider your losses.
What kinds of debts can you relieve yourself of? Child support payments or student loans aren’t eligible for bankruptcy. Bankruptcy is more for credit, which is often the problem in itself.
If you still think bankruptcy is the only option, make sure you get an experienced attorney to help you through the ordeal. More bills, but an attorney will make sure the process is conducted correctly. Often, there are strict guidelines and restrictions you should be aware of. Bankruptcy isn’t something you should go through alone.
Whatever the outcome, there is always a place to turn to for help - online, on the telephone or in the main street. Use them.
http://www.content.onlypunjab.com/Article/Is-Bankruptcy-Right-For-You-/4200320092003352392
Bankruptcy is a very serious ordeal, not something to be thought about lightly. If you are considering filing for bankruptcy, there are a few things you should evaluate first, before you do.
The first thing to consider is your eligibility for Chapter 7 protection. If eligible, it will take a majority of your debt away. The guidelines can be strict, but if you are sincerely in need of such protection, this isn’t out of reach.
Secondly, you need to rethink your alternatives. Filing for bankruptcy can harm your credit drastically- make sure there is no other way out. You can try debt consolidation, or talking to your creditors yourself. If it doesn’t seem like things are working, then it’s time to consider your losses.
What kinds of debts can you relieve yourself of? Child support payments or student loans aren’t eligible for bankruptcy. Bankruptcy is more for credit, which is often the problem in itself.
If you still think bankruptcy is the only option, make sure you get an experienced attorney to help you through the ordeal. More bills, but an attorney will make sure the process is conducted correctly. Often, there are strict guidelines and restrictions you should be aware of. Bankruptcy isn’t something you should go through alone.
Whatever the outcome, there is always a place to turn to for help - online, on the telephone or in the main street. Use them.
http://www.content.onlypunjab.com/Article/Is-Bankruptcy-Right-For-You-/4200320092003352392
Debt Settlement - An Alternative To Bankruptcy?
Debt Settlement can constitute an alternative to filing for bankruptcy and should be taken into account when considering your possibilities if you’ve run into financial troubles. However, debt settlement truly is an aggressive approach to a debt elimination process and thus, also has some negative short term consequences. Nevertheless, as compared to bankruptcy the negative inputs on your credit report are completely manageable and you’ll be able to recover a lot sooner. Remember that a past bankruptcy entry remains on your credit report for up to 10 years.
Why Does Debt Settlement Work?
What lenders and other creditors want is to at least recover their investment. Thus they would most certainly prefer to settle for a lower amount than to risk the borrower to file for bankruptcy and maybe get nothing at all. However, creditors will want to get as much money as possible and will present a hard negotiating position so as to achieve this goal.
That’s why a debt settlement program should be carried out by professional negotiators. Negotiators know exactly how to deal with creditors and obtain higher waives on the claimed debts. Debt settlement experts know exactly how long they can push so as to make creditors give up a larger portion of the outstanding debt and thus enhance your financial situation.
Debt Eliminated Equals Taxable Income?
There is however, a problem with debt elimination that has to be taken into account when undertaking debt settlement. When debt is forgiven, it’s just like getting an additional income that was not expected. The IRS considers forgiven debt to be taxable and thus in most cases by the end of the fiscal period, you’ll have to pay income tax on that.
Though in almost every situation, eliminated debt equals taxable income and has to pay taxes, there are some situations in which special deductions can be made. If the financial situation of the borrower is particularly complicated, there is a special form that can be filled claiming excessive hardship that can waive the payment of the income tax on eliminated debt.
Short Term Consequences On Credit Score
During a debt settlement process there are some consequences that are inevitable. The credit history of the debtor will show unpaid balances and missed payments on various debts till all of it is finally settled. Thus, the credit score of the debtor will suffer greatly. All through the first phase of the debt settlement process the client’s credit score can drop dramatically.
This is due to the fact that creditors have to keep informing the state of the debts and open credit lines. Yet, after the debt settlement process is completed, the creditor can be obliged to notify that the debt was canceled. Nevertheless the report will show that debt was settled or that it was settled for less than the full amount which will remain in your credit report showing that you resorted to debt settlement services.
http://www.content.onlypunjab.com/Article/Debt-Settlement---An-Alternative-To-Bankruptcy-/4200320092003358175
Why Does Debt Settlement Work?
What lenders and other creditors want is to at least recover their investment. Thus they would most certainly prefer to settle for a lower amount than to risk the borrower to file for bankruptcy and maybe get nothing at all. However, creditors will want to get as much money as possible and will present a hard negotiating position so as to achieve this goal.
That’s why a debt settlement program should be carried out by professional negotiators. Negotiators know exactly how to deal with creditors and obtain higher waives on the claimed debts. Debt settlement experts know exactly how long they can push so as to make creditors give up a larger portion of the outstanding debt and thus enhance your financial situation.
Debt Eliminated Equals Taxable Income?
There is however, a problem with debt elimination that has to be taken into account when undertaking debt settlement. When debt is forgiven, it’s just like getting an additional income that was not expected. The IRS considers forgiven debt to be taxable and thus in most cases by the end of the fiscal period, you’ll have to pay income tax on that.
Though in almost every situation, eliminated debt equals taxable income and has to pay taxes, there are some situations in which special deductions can be made. If the financial situation of the borrower is particularly complicated, there is a special form that can be filled claiming excessive hardship that can waive the payment of the income tax on eliminated debt.
Short Term Consequences On Credit Score
During a debt settlement process there are some consequences that are inevitable. The credit history of the debtor will show unpaid balances and missed payments on various debts till all of it is finally settled. Thus, the credit score of the debtor will suffer greatly. All through the first phase of the debt settlement process the client’s credit score can drop dramatically.
This is due to the fact that creditors have to keep informing the state of the debts and open credit lines. Yet, after the debt settlement process is completed, the creditor can be obliged to notify that the debt was canceled. Nevertheless the report will show that debt was settled or that it was settled for less than the full amount which will remain in your credit report showing that you resorted to debt settlement services.
http://www.content.onlypunjab.com/Article/Debt-Settlement---An-Alternative-To-Bankruptcy-/4200320092003358175
Bankruptcy Loans Based On Equity Can Solve Your Problems
If you have sufficient equity on your home you can get very advantageous terms on your loans even after bankruptcy.
Bankruptcy Home equity loans can be the solution to your financial problems. These loans feature very advantageous terms in spite of bad credit. Thus, your bankruptcy won’t be an obstacle for approval and you will only have to meet some basic requirements in order to qualify for a bankruptcy home equity loan.
Bankruptcy Home Equity Loans
Bankruptcy home equity loans are specially tailored home equity loans that have been designed to meet the needs of those who have gone through a bankruptcy process. The loan terms won’t be as advantageous as regular home equity loans but the requirements for a approval won’t be so harsh either so as to make sure that those with bankruptcies on their credit reports can qualify for them.
As regular equity loans, these loans are based on the remaining value of a property that is not securing a loan already. Equity is the difference between the market value of a property and the balance of the debts that the property is being guaranteeing. For example: a $100,000 house with a mortgage balance of $50,000 has another $50,000 of home equity free and that amount can be used to secure a home equity loan that almost always and especially on this case, won’t feature the total amount but a percentage (usually up to 85%).
Benefits Of Home Equity
Home equity can provide you with all the funds you need at very reasonable rates. Not only you can obtain higher loan amounts than with non-secured loans, the rest of the loan terms will also be significantly more advantageous: You’ll get lower interest rates and costs, more flexible repayment programs and thus, lower monthly payments easy to afford.
Also, since these loans are secured loans, there is not much to worry about qualifications. Due to the risk reduction that collateral implies, there are no thorough credit verifications to be done. Instead, a single credit pull will be made and the credit requirements for approval are lessened compared to regular sources of financing.
Requirements To Qualify For A Loan
As stated above, the requirements for approval are quite simple. A simple credit verification process followed by a thorough analysis of the property’s documentation will take place. And last, but not least, you’ll need to show proof of a steady income good enough to afford the monthly payments on the loan you apply for.
In order to prove income, you’ll need to show copies of paychecks or tax presentations and the amount of the monthly payments must not exceed 40% of your available income every month or else, you might not be able to get approved for the amount that you desire because the lender wants to make sure that you’ll be able to afford the monthly payments without sacrifices.
http://www.content.onlypunjab.com/Article/Bankruptcy-Loans-Based-On-Equity-Can-Solve-Your-Problems/4200320092003355365
Bankruptcy Home equity loans can be the solution to your financial problems. These loans feature very advantageous terms in spite of bad credit. Thus, your bankruptcy won’t be an obstacle for approval and you will only have to meet some basic requirements in order to qualify for a bankruptcy home equity loan.
Bankruptcy Home Equity Loans
Bankruptcy home equity loans are specially tailored home equity loans that have been designed to meet the needs of those who have gone through a bankruptcy process. The loan terms won’t be as advantageous as regular home equity loans but the requirements for a approval won’t be so harsh either so as to make sure that those with bankruptcies on their credit reports can qualify for them.
As regular equity loans, these loans are based on the remaining value of a property that is not securing a loan already. Equity is the difference between the market value of a property and the balance of the debts that the property is being guaranteeing. For example: a $100,000 house with a mortgage balance of $50,000 has another $50,000 of home equity free and that amount can be used to secure a home equity loan that almost always and especially on this case, won’t feature the total amount but a percentage (usually up to 85%).
Benefits Of Home Equity
Home equity can provide you with all the funds you need at very reasonable rates. Not only you can obtain higher loan amounts than with non-secured loans, the rest of the loan terms will also be significantly more advantageous: You’ll get lower interest rates and costs, more flexible repayment programs and thus, lower monthly payments easy to afford.
Also, since these loans are secured loans, there is not much to worry about qualifications. Due to the risk reduction that collateral implies, there are no thorough credit verifications to be done. Instead, a single credit pull will be made and the credit requirements for approval are lessened compared to regular sources of financing.
Requirements To Qualify For A Loan
As stated above, the requirements for approval are quite simple. A simple credit verification process followed by a thorough analysis of the property’s documentation will take place. And last, but not least, you’ll need to show proof of a steady income good enough to afford the monthly payments on the loan you apply for.
In order to prove income, you’ll need to show copies of paychecks or tax presentations and the amount of the monthly payments must not exceed 40% of your available income every month or else, you might not be able to get approved for the amount that you desire because the lender wants to make sure that you’ll be able to afford the monthly payments without sacrifices.
http://www.content.onlypunjab.com/Article/Bankruptcy-Loans-Based-On-Equity-Can-Solve-Your-Problems/4200320092003355365
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