Reorganization of Debts
How soon would I be eligible for a mortgage after bankruptcy ?
This question is often asked and really is hard to determine, as it really depends on which mortgage company you are dealing with and how they look at your bankruptcy, whether it be a Chapter 7 or Chapter 13.
In an article published by HSH.com , Julie Flatland, vice president of credit in the mortgage lending division of Carrington Mortgage Services in Santa Ana, California, is interviewed and provides some insight into this question that is often asked of bankruptcy attorneys by their clients, but never really answered.
Ms. Flatland provides some distinctions between Chapter 7 and Chapter 13 and how they can have different effects on the ability to be eligible for a mortgage after bankruptcy. She also provides four guidelines, or steps, to follow to improve your chances for qualifying for a mortgage.
All in all, her article confirms what I have generally always told my clients, and that is that obtaining mortgages and other debt after bankruptcy is usually possible, but is always dependent on your financial activities after bankruptcy and also which creditor is considering you for credit. As a general rule, our experience has been that bankruptcy does not totally destroy your ability to get credit in the future.
Click here to read the full article by hsh.com
If you have questions about bankruptcy, give us a call. The first appointment with us is free and there is no obligation. We might be able to help.
Read Full Post | Make a Comment ( None so far )Credit Counseling, Debt Consolidation or Bankruptcy?
Are you considering debt relief through an online consumer credit counseling or debt consolidation service ? You may be surprised to learn that they can do more harm than good to your credit. Most times, bankruptcy is a better option, and many attorneys will be happy to sit down with you for a free consultation and thoroughly discuss your personal financial situation in order to help you decide what is the best solution for your financial problems. In analyzing your particular situation, it’s always important to consider if there is an alternative to filing bankruptcy.
The decision to file bankruptcy is a difficult choice for folks to make. A bankruptcy will affect, in some fashion, your future credit. Bankruptcy, though, does not totally destroy your ability to get credit in the future and can impact it much less than continued delinquencies on your credit report. The decision to file bankruptcy must be carefully made in consultation with an attorney.
Buy Here, Pay Here Car Loans … Do I Have to List It in My Bankruptcy ?
Yes, car lots that finance the purchase of car are very common and do have to be listed as a creditor in your bankruptcy and the vehicle you purchased does have to be listed as an asset. If you have such a vehicle loan, be sure and tell your bankruptcy attorney about the loan. If you are current on the loan, and you are filing Chapter 7 bankruptcy, you can very likely reaffirm the loan and keep paying the car lot and keep the vehicle. You also have the option of surrendering the vehicle back to the car lot and owing them nothing in a Chapter 7 bankruptcy. If you are filing Chapter 13 bankruptcy, you can surrender the vehicle, keep the vehicle and keep paying for it outside the Chapter 13 plan, or put the debt on the vehicle inside the plan and keep the vehicle. The details, paperwork and title of the purchase and the vehicle need to be provided to your bankruptcy attorney immediately. There are issues that could arise that your attorney can check that could affect your ability to keep the vehicle if you are filing Chapter 7, even if you wanted to keep paying for it and are current on the payments.
Your attorney can guide you as to the best option for you in keeping the vehicle or letting it go.
Read Full Post | Make a Comment ( None so far )Bankruptcy
The federal government passed the bankruptcy code to protect and aid persons and businesses who find themselves trapped in a situation in which they can not survive without help. It can also allow a way to restructure their debts to the benefit of themselves and their creditors.
Read Full Post | Make a Comment ( None so far )Credit Counseling, Debt Consolidation or Bankruptcy ?
Are you considering debt relief through a consumer credit counseling or debt consolidation service ? You may be surprised to learn that they can do more harm than good to your credit. Many times, bankruptcy is a better option, and we will be happy to sit down with you and thoroughly discuss your personal financial situation in order to help you decide what is the best solution your financial problems. In analyzing your particular situation, we always consider if there is an alternative to filing bankruptcy. The decision to file bankruptcy is a difficult choice for many people to make. A bankruptcy will affect, in some fashion, your future credit. Bankruptcy, though, does not totally destroy your ability to get credit in the future. The decision to file bankruptcy must be carefully made in consultation with an attorney.
Read Full Post | Make a Comment ( None so far )Can filing bankruptcy improve your credit score ?
Sounds incredible, right ?
But the facts are pretty much established that it will.
How do we know this ?
For the first few months, most clients see no change in their credit score. After about the first year or so, folks will generally see their credit score improve and continue to improve year after year as long as they establish good financial practices and goals.
What ?! You are thinking: “But I thought filing bankruptcy totally destroyed my credit ?”
But it really doesn’t
I always tell clients that there are three reasons we know this.
#1 Having practiced bankruptcy law for the past 25 years, we have had folks that have filed, and need to come back several years later and file again. Since the first bankruptcy, they have incurred additional credit such as home loans, car loans, and other debt and for example, may have a loss of income, and have to file bankruptcy again. The point is they were able to obtain credit after the first bankruptcy.
#2 Approximately 1 to 1.5 million folks file bankruptcy every year in the United States. If the banks and lending companies had a policy of never lending to someone who had a bankruptcy on their credit report, they wouldn’t be in business. For the first few years after bankruptcy, you may have to pay a higher interest rate than someone who has not filed bankruptcy, but credit will likely be available to you if needed.
#3 In the alternative, if you don’t file bankruptcy, the late payments and delinquent debt continue to mount on your credit report and drive your score lower and lower. After filing bankruptcy, any potential new creditor that looks at your credit report will see that your old debt (which still shows on the credit report) has been discharged in bankruptcy and you can’t be forced to pay it and not be able to pay that new creditor. They may, then, feel more comfortable lending to you. Also, that new creditor knows that folks can only file Chapter 7 bankruptcy every 8 years.
Bankruptcy is a time-honored practice that can enable folks to get back on their feet and provide for their family. It is available as a Federal Law provided for in the United States Constitution.
photo credit: Elīna Baltiņa via photopin cc
Read Full Post | Make a Comment ( None so far )Can Bankruptcy Help ?
Although bankruptcy cases can be complex, many of the procedures and cases are routine. Before filing a bankruptcy case, you or your attorney should analyze your eligibility for different forms of debt relief available under the Bankruptcy Code and which form of relief is most beneficial to you. Be sure you understand the relief you can obtain and its limitations.
To file a bankruptcy case, documents called a Petition, Schedules, and Statement of Financial Affairs, as well as in some cases a Statement of Intention need to be prepared correctly and filed with the bankruptcy court. You will have to pay a filing fee to the bankruptcy court.
Once your case is filed, you will have to attend a first meeting of creditors where you will be questioned under oath by a court official called a “trustee”. At this meeting you may also be questioned by your creditors.
If you choose to file a Chapter 7 case, you may be asked to reaffirm a debt. You may want help deciding whether to do so. A creditor is not permitted to coerce you into reaffirming debts.
If you choose to file a Chapter 13 case in which you repay your creditors what you can afford over a 3 to 5 year period, your attorney will help you in preparing your Chapter 13 plan and with the confirmation hearing on your plan which will be before a Federal Bankruptcy Judge.
If you select another type of relief under the Bankruptcy Code other than chapter 7 or chapter 13, you will want to find out what should be done from someone familiar with that type of relief.
Read Full Post | Make a Comment ( None so far )So You Have Decided To Use a Debt Management Company To Help You With Your Bills
If you have decided to use the services of a debt management or debt consolidation company, keep in mind that you may be much better off consolidating your debt under Chapter 13 of the United States Bankruptcy Code. You set the plan approved by the Court and make payments pursuant to a Federal Court order that:
1. Stops interest for unsecured creditors
2. Stops late fees
3. Stops and prevents lawsuits
4. Stops harassing telephone calls
Most debt management or debt consolidation plans do not do these things for you.
Have a lawyer with extensive bankruptcy experience review your financial situation and advise you of the options available to you.
Read Full Post | Make a Comment ( None so far )Is bankruptcy for you ?
Although bankruptcy cases can be complex, many of the procedures and cases are routine. Before filing a bankruptcy case, you or your attorney should analyze your eligibility for different forms of debt relief available under the Bankruptcy Code and which form of relief is most beneficial to you. Be sure you understand the relief you can obtain and its limitations.
To file a bankruptcy case, documents called a Petition, Schedules, and Statement of Financial Affairs, as well as in some cases a Statement of Intention need to be prepared correctly and filed with the bankruptcy court. You will have to pay a filing fee to the bankruptcy court.
Once your case is filed, you will have to attend a first meeting of creditors where you will be questioned under oath by a court official called a “trustee”. At this meeting you may also be questioned by your creditors.
If you choose to file a Chapter 7 case, you may be asked to reaffirm a debt. You may want help deciding whether to do so. A creditor is not permitted to coerce you into reaffirming debts.
If you choose to file a Chapter 13 case in which you repay your creditors what you can afford over a 3 to 5 year period, your attorney will help you in preparing your Chapter 13 plan and with the confirmation hearing on your plan which will be before a Federal Bankruptcy Judge.
If you select another type of relief under the Bankruptcy Code other than chapter 7 or chapter 13, you will want to find out what should be done from someone familiar with that type of relief.
Your bankruptcy case may also involve litigation. You are generally permitted to represent yourself in litigation in bankruptcy court. BE AWARE – Only an attorney can give you legal advice and can represent you in court.
The bottom line: Find a good attorney you can trust and be comfortable with and allow them to assist you. Bankruptcy is not the end of the world, in fact, in most cases it can be the beginning of your fresh start !
photo credit: Education Bankruptcy via photopin (license)
Read Full Post | Make a Comment ( None so far )Looking at Your Bills ?
If you are looking at your debt today and feel that it is a burden to your life, give us a call here at Rogers Law Consumer Help Center and we will be happy to schedule you a free, no obligation appointment to meet with you and discuss your options for resolving these issues. You are not alone. We are here to help and are ready to put our many years of experience to work for you. John Rogers, Attorney at Law is Board Certified in Consumer Bankruptcy Law by the American Board of Certification. Give us a call today at 1-888-651-9353
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