Showing posts with label Bankruptcy. Show all posts
Showing posts with label Bankruptcy. Show all posts

Saturday, March 23, 2019

A Mortgage Loan After Bankruptcy: Deal or No Deal

A Mortgage Loan after Bankruptcy: Deal or No Deal

Many people believe that having a bankruptcy on your credit report will completely destroy any chance of getting a mortgage loan. While it is true that it certainly does not help your credit, you should know that bankruptcy does not mean you will never again be able to obtain a mortgage loan. You see, even having a bankruptcy on your credit, you could even obtain a mortgage. But you might think, no, I don't think so. Well, it is true, even after bankruptcy, obtaining a mortgage loan is entirely within the realm of possibility.

If you already have a mortgage, you will be happy to find out that you could even consider refinancing that mortgage, yes even with something such as bankruptcy. Recovery is possible; however, it is not the easiest or shortest road that you will have to endure in your lifetime. It is going to be a long road and you have to work diligently to build your credit back up, refrain from obtaining more credit and once again regain the trust of lenders and creditors.

Related: Declaring Bankruptcy: Ways To Get Credit After Bankruptcy

How can you do that? Well, the first thing you must do is to create a viable budget that you and your family can live with. How do you create a budget? Well, get a piece of paper and on one side of this paper make a list of the income coming into your home each month. This means the income of each person that is bringing money into the home, as well as any other income that should be included. On the other side, make a list of your expenses. Be sure to include all expenses, such as mortgage or rent payments, car payments, insurance payments, utility payments, groceries, entertainment and other household expenses. It is extremely important that you establish a budget for your personal finances.

This is obviously the similar data that you were required to provide as part of filing for bankruptcy. After a review of this data you should be able to determine if you are living outside of your means? Is your expenditure side greater than your income side? If so, make some adjustments, eliminate things you simply don't need and cut back on things that you don't need as much of.

Now that you have created a workable budget, it is important that you make all payments on time, every single month. Do not allow yourself to make late payments at all. This is a very good way to rebuild your credit. To really speed up the process of rebuilding your credit, you will want to have one or two credit items listed. These could be your mortgage, your car or even one emergency credit card. This will help creditors see that you are indeed working to rebuild your credit and maintaining the right path to financial freedom.

You should also never rush yourself. Do not try to apply for a mortgage loan until about one to two years after your bankruptcy has been discharged. This is important; because creditors will want proof that you are indeed going along the right path, instead of digging yourself right back into the hole of debt you were once in. A mortgage after bankruptcy is possible, if you work hard to repair your credit, make all your monthly payments on time and refrain from obtaining more debt than you make in income each month.

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Declaring Bankruptcy: Ways To Get Credit After Bankruptcy

Declaring bankruptcy: Ways To Get Credit After Bankruptcy

Ways To Get Credit After Bankruptcy - Declaring bankruptcy may seem like a financial disaster, but it is possible to bounce back in a short amount of time. In most cases, you have to give up your credit cards when you declare bankruptcy. But it's almost impossible to do certain things--like rent a car or reserve a hotel room--without a credit card. Fortunately, there are some ways you can get credit after bankruptcy.
Get a secured credit card.
Secured credit cards are available to almost everyone, even those who have recently declared bankruptcy. You make a cash deposit of a certain amount--say, $250--and you're given a credit card with a $250 limit. Your deposit "secures" your card so that, if in the future you can't make payments on it, the bank will have your deposit as payment. In many cases, if you use the credit card wisely and always make on-time payments, the bank will eventually expand your credit limit past the amount of your deposit.
Accept a higher rate.
Since bankruptcy makes you a higher risk customer, some banks or lending companies may offer you credit--but at an increased rate. Whether it's a loan or a credit card, you may pay a higher interest rate, higher fees or higher charges. And chances are the amount you'll qualify for is lower than it would have been if you had never declared bankruptcy. Still, it is possible to get a loan or credit card after bankruptcy if you?re willing to accept these increased costs.
Use a little collateral.
If you own your own home or car, you can use it as collateral on a loan. In many cases, even after bankruptcy, this will get you a reasonable interest rate and reasonable fees. For example, if you have equity in your home, you can get a Home Equity Line Of Credit (HELOC) which draws on your home's equity as the collateral for your credit.
If you recently declared bankruptcy, there are some options available for you to obtain credit. And it's a good idea to get at least one credit card or small loan--and make regular, timely payments on it--so you can rebuild your credit history.
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Thursday, March 23, 2017

10 Ways To Protect Yourself From Bankruptcy Caused By Prolonged Illness

10 Ways To Protect Yourself From Bankruptcy Caused By Prolonged Illness

Ways To Protect Yourself From Bankruptcy Caused By Prolonged Illness - Accidents and prolonged sickness can be a drain both emotionally and financially. Sometimes money crunch is caused by the inability to hold a job, or when the medical bills escalate and it becomes increasingly difficult to balance expenses.

Further, medical insurance may proves insufficient or will not cover long-term medications. Life has become such that one needs to think about and plan for any eventuality.

Experts recommend the following:

1. Ask your doctor for samples of medication.

2. Often an older drug is effective and cheaper. Request the doctor to write a prescription for a drug that is more affordable. According to studies you can save up to 75% this way.

3. Find out the generic name of the medication and choose to purchase it instead of branded medication ---the saving can amount to as much as 70%.

4. Very often companies sell higher dosages of medication for a marginally higher cost. Be prudent, buy the higher dosage and spilt the medication in half, one-third, or quarters. The savings you can make are almost 50 %.

5. Order 90-day supplies in bulk from discount mail order pharmacies or online services. The savings are considerable and many doctors help long term patients reduce costs by putting the patients in touch with distributors.

6. If a particular medication is very expensive ask the doctor to recommend a substitute. This is known as therapeutic substitution.

7. Do try comparison shopping. You will find that the same medication is priced differently in local pharmacies, online outlets, and chain stores. Online pharmacies like http://www.walgreens.com/, www.costco.com , or http://www.drugstore.com/ offer medications at affordable prices.

8. There are several patient-assistance programs that offer free or discounted medication to those who cannot afford long term illness. Companies like Merck have programs that benefit uninsured patients. Medicines are given at discounts of 10-40%.

9. If you or a family member travels frequently you could buy your medicines abroad. Often the same medicine manufactured by the same company is much cheaper overseas. One can also order medicine by mail from Canada where medicines cost 30-50% less than the US. But do check the laws before you attempt this.

10. Start a health saving account where you can save pre tax dollars towards unforeseen medical expenses. This has a high deductible. Find out if you or other family members are eligible.

Use an insurance broker who always thinks of you. He must keep you updated on all new developments as far as health schemes are concerned and make sure you reap all the benefits of the insurance scheme. You could also consider a critical illness policy in addition to a regular health insurance.
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