Refinancing your mortgage after a Chapter 7 bankruptcy allows you to cash out your equity and find lower rates. You can also lower your payments by extending your loan term. Two years after your bankruptcy has been discharged, you may qualify for conventional rates. But if you need a refi loan sooner, you can find a sub-prime lender to work with you.

Timing Your Refinancing

Most financial advisors will counsel you to wait two years before applying for a new loan. Within those two years, you can reestablish your credit score to good standing and qualify for a Fannie Mae loan with market rates.

However, you can find refinancing sooner by working with a sub-prime lender. Depending on your credit score, cash assets, and income, you can find a financing package only a couple of points higher than conventional rates.

Before You Apply For A Refi Loan

Before you apply for a refi loan, check your credit report to be sure that your bankruptcy was properly discharged. Make sure accounts are in good standing and have accurate information. You can also include a letter explaining the circumstances of your bankruptcy, which can help your loan application.

Also, take the time to research lenders. Just like with any product, shopping around will guarantee that you get the best deal. It just takes a few minutes to receive loan quotes online. And you can review them at home with no pressure. While you are looking at rates, also note fees and closing costs.

Getting Better Rates

If you didn’t get the best terms or rates on your first mortgage, now is the time to find them. For the lowest payments, choose an adjustable rate mortgage. Usually for the first two to five years rates will be lower than fixed rates. Some lenders will also allow you to lock in a rate for a fee.

Interest rates can also be lowered by choosing a shorter term loan. While your total interest costs will be less, your monthly payments will be higher. Some lenders will also lower rates if you set up an automatic payment, usually debited from your checking account.

Queens is the largest borough of New York City, located on the western portion of Long Island. It is home to New York City’s two major airports (John F. Kennedy and LaGuardia), the New York Mets baseball team, the USTA Billie Jean King National Tennis Center, Kaufman Astoria Studios, Flushing Meadows Corona Park, and Queens Center.

Queens is made up of many neighborhood areas such as: Howard Beach, Middle Village, and Whitestone, which are home to large Italian American populations. Local Rockaway Beach has a large Irish American population. Astoria, in the northwest, is home to one of the largest Greek populations outside of Greece, where a large population of young professionals live and commute to Manhattan. Nearby Long Island City is a major commercial center and the home of the Queensbridge housing project.

There are many great Queens bankruptcy attorneys available for hire. Take a look at Google search or open up a phone book and you can find many outstanding lawyers offering free bankruptcy consultations. If you can travel a bit, look up Brooklyn, Bronx, Manhattan or any of the other 4 boroughs – you might be able to find a great deal a short subway ride away.

Whichever lawyer you find, it’s important that you determine if you can file for a Chapter 7 or Chapter 13 bankruptcy. The means test is a great way to find out and it will take your monthly income and compare it to the median income in New York state to see if you’re below that. Don’t worry about knowing all the intricate details, your bankruptcy lawyer can help you with all the finer points.

If you want to do some research prior to hiring an attorney, check out many free resources on the web. There are online bankruptcy directories as well as forums that have great information to help you understand the rules as they apply in your specific situation.

When it comes to bankruptcy, it seems like there’s been an ongoing battle between creditors and debtors for a long time. In the U.S., for example, there have been a series of bankruptcy laws during our history which sometimes benefited the creditors and sometimes the consumer. Recently, a law was passed by Congress as a result of extensive lobbying by the credit card industry.

Essentially, this law tries to make it more difficult for someone to file for bankruptcy, specifically chapter seven bankruptcy where most of your debts are completely wiped out. The new law was passed in 2005, and one of the main provisions was the means test. This test tries to determine whether or not you can actually pay your debts.

The first thing you should know is how your income compares to other people’s income in your own state. If your income is below the median income of your state, then you don’t even have to worry about that means test. This makes sense, of course, because if you have a lower income you’re less likely to be able to afford your debts.

If your income is higher, however, you’ll have to go through the annoying process of calculating all of your income and expenses. Based on this, the court will determine whether you can afford to pay both your necessary expenses and your consumer debt. If the court determines that you make too much money, you may be forced to pay part or all of your debt (though you’ll probably be given a repayment plan as part of a chapter 13 bankruptcy).

Chances are you’ll qualify for bankruptcy, but you have to go through the new process step by step with good legal advice by your side.

Don’t let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn more about bankruptcy means tests visit us at http://personalbankruptcyquestions.org

Student debt and “undue hardship”

If you are buried deep in debt but your debt is mainly student debt you may want to reconsider bankruptcy since almost all

student loans are non-dischargeable. The law is clear when it comes to student loan debt: Unless repayment causes the debtor undue hardship, courts won’t allow discharge of student debt.

The above is applicable to Chapter 7 Bankruptcy and Chapter 13 Bankruptcy too. So in order to be able to get discharged from student debt you’ll need to meet the “undue hardship” requirement.

This concept implies an excessive poorness caused by the debt that would affect the ability of the debtor of paying for basic needs. The main difficulty is to prove undue hardship.

A bit of history

Student Debt used to be more easily discharged in the past. However, due to abuse, Bankruptcy’s legal requirements were modified and now it is extremely difficult to get discharged.

The abuse consisted on filing for bankruptcy immediately after finishing college, thus getting discharged of their student

debt prior to joining the workforce.

When this practice became common, lenders complained and got the administration to modify the rules that controlled bankruptcy.

Discharging Nowadays

Currently, the exception of hardship includes government loans and nonprofit organization loans.

So it has become even more difficult to get student debt discharged. Besides, not only has the debt to disrupt the debtor ability to maintain an adequate minimal standard of living but the debtor must have tried by every possible way to repay the debt.

Co-signer Responsibility

Even if the debtor meets all this requirements, any co-signer who subscribed the loan with the debtor won’t be covered by the hardship exception and thus will be the sole responsible one for the debt repayment.

This is one of the lender’s main securities and explains why most of the student loan lenders require a co-signer in order to grant a loan.

Final considerations
Filing for bankruptcy or not is a decision that has to be intensively meditated and must be substantiated in the need of a fresh new start when there is no other choice.

If a bankruptcy won’t discharge your student debt, and if your student loans are the main constituent of your debt, then it makes no sense to suffer all the bad consequences associated with a bankruptcy without being able to enjoy the benefits.

However, if your income is too low, your debt won’t let you even breath and there is no other way of recovering from this situation, you may be able to convince a court that due to the excessive burden your debt has turned into, it should be discharged.

That way, you’ll be able to get a fresh start and become debt free.

In the past, traditional mortgage lenders have automatically rejected people who had declared personal bankruptcy. Many potential home-buyers or exiting homeowners felt they must wait at least seven to ten years after a bankruptcy to be eligible for financing. This is a common misconception.

While some people declaring bankruptcy have had trouble managing their money, a larger number of those declaring have simply experienced unfortunate events. Americans have been filing bankruptcies at record-high levels over the last many years, especially last year.

Though a bankruptcy is certainly a blemish on a credit report, it does not necessarily disqualify a borrower. Recognizing that sometimes bad things happen to good people, some select loan officers are becoming more willing to take a calculated risk.

Some lenders use a scoring system to determine whether potential borrowers are a worthwhile risk. Unfortunately, bankruptcy gives an automatic low score. However select lenders are beginning to look beyond the scores and look at the individuals in need.

Instead of waiting two or four years after being discharged from bankruptcy, some mortgage professionals are willing to give a home loan much sooner. Those who have declared Chapter 7 bankruptcy liquidation may be eligible for a loan in as little as one day after discharge, and those who have declared Chapter 13 may be eligible for a loan even while they are still in their plan.

Another common misconception is that a previous bankruptcy on your credit report will require you to have a large down payment and pay extremely high rates and points. There are currently programs available with no down payment required and with very attractive rates and points.

Some lenders are even pre-qualifying buyers for a loan, saving time and making the home-buying experience easier and more efficient. When a buyer pre-qualifies they will have the advantage of greater negotiation power.

No matter what the situation, select mortgage professionals have a program that will work for the buyer with a bankruptcy history. If a buyer cannot get approved, there are customized plans that can re-establish credit to help the buyer become mortgage ready, ensuring homeownership in the future.

Because of new options, bankruptcy no longer needs to stand in the way of getting a home loan. With the help of more creative lenders, those who have experienced financial difficulty will have an easier time getting a mortgage.

If you have recently filed bankruptcy, you may have a few questions about your ability to get a home loan. Here are some common questions about mortgages after bankruptcy:

How long after my bankruptcy has been discharged should I have to wait to get approved for a mortgage loan? – Typically, mortgage lenders are open to considering an approval for a home loan after 2 years. Some lenders that are more strict have a policy of waiting 3 years to begin considering financing. It’s possible to get mortgage financing before 2 years from the discharge date, you just may end up needing a down payment or you may have to settle for a much higher interest rate.

Can I get the best interest rates available? Is it possible? – It’s not likely. The most likely way to get the lowest interest rate available would be to have a large down payment. Also, another factor that will contribute to what type of interest rate you qualify for would be how well you have paid your bills since the bankruptcy discharge.

What other factors will help me get approved for a home loan? – Your credit is only one of a few of the main factors in getting a home loan. Other factors include, employment history, debt-to-income ratio, the homes loan-to-value, income and down payment. So, consequently, if you have credit problems, it’s important, not only to work on increasing your credit score but to strengthen the other factors that work for you in the loan process.

How long will a bankruptcy affect my ability to get a mortgage loan? – A chapter 13 bankruptcy stays on your credit history for 7 years and a Chapter 7 bankruptcy stays on credit for 10 years. However, starting from the first day after your bankruptcy discharge date, as your credit improves, your credit score improves. As you make payments over time, your credit score will continue to go up and can be in the high 600′s or 700 even before you bankruptcy filing has come off your credit report.

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When individuals or businesses are facing financial difficulties and inhibiting debt they may seek to obtain relief through the legal process of bankruptcy. A person may file for Chapter 7 bankruptcy and be able to eliminate all or part of the debt. However, they may choose to file for Chapter 13 which stretches out the payments on existing debts.

The process of filing for bankruptcy is also designed to provide protection from creditors. In this case, secure creditors have the assurance of being reimbursed because they are able to hold a lien on property. Thus, this option of payment is likely to be more accepted. Most creditors cannot attempt to collect any form of payment from you while the bankruptcy case is pending. Any discharged or excused debts are also unable to be collected from creditors. However, it’s best to understand that not all debts are discharged.

Approximately 90 percent of all bankruptcy cases are caused by unemployment, medical bills, or divorce. While every situation is different the most common feature of bankruptcy is a large amount of debt incurred. The high interest rates of credit cards may also be a contributing factor.

Filing for bankruptcy is usually a last resort decisions which is made personally. The first step however, from freeing yourself from financial burden is making the best possible decision with the least bit of strain. Once this is done, you can petition the court. Basically the petition is seen as a request for protection and relief from creditors. It’s only logical that you must provide some personal details such as assets, liabilities, income, and expenditures. Most often they will have had to undergo credit counseling within the allotted time.

Of course the most significant advantage to filing for bankruptcy is getting a fresh financial start. Another advantage is that after filing, most collection efforts will stop. It is also unlikely to affect your employment status. in most cases it will also end all garnishments. However, keep in mind that laws vary from state to state. Some states may even allow you to keep all equity in your home while others, may exempt a certain amount.

If filing for bankruptcy is in your future it’s best to hire a bankruptcy lawyer. Use caution when associating with petition preparers, typing services, or paralegals. Filing on your own is most often not advized but should you choose to do so educate yourself on the laws and processes in your state.

Are you struggling with high interest credit card debt or unpaid medical bills and simply have no idea how you’re going to catch up to all of your monthly payments? If you’ve been thinking about bankruptcy as a solution to your financial problems, you should know about the bankruptcy automatic stay provision. While you should not take bankruptcy lightly, it may be the solution that you’ve been looking for.

When you file for bankruptcy, the automatic stay kicks in and prevents your creditors from foreclosing on your house or repossessing any of your assets. In fact, bill collectors are not even supposed to bother you, at least until your case has been settled. If you are contacted despite the automatic stay, the offending party will have to answer to a federal bankruptcy judge.

Of course, this provision is only temporary, and the outcome of your bankruptcy case will determine what exactly happens to all of the debts that you were unable to pay off previously. Even so, the bankruptcy automatic stay provision can give you some real relief when you figure out what to do.

If your Chapter 7 bankruptcy case is successful, you may be able to discharge much or all of your debt. If you decide to file Chapter 13 bankruptcy instead, you will be given a chance to make monthly payments through a restructuring program. Either way, you should find it much easier to deal with repayments.

It’s important to realize that there have been some changes in recent years, so you should discuss your options thoroughly with a bankruptcy lawyer and possibly a financial adviser. You don’t want to make any assumptions when it comes to such a big decision that could have long-term ramifications for your financial future. Make sure to get all the facts and learn as much as possible before making your final decision.

Don’t let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn the answers to common bankruptcy automatic stay visit us at http://personalbankruptcyquestions.org

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If you have filed for bankruptcy in the past, then you already know how difficult it can be to get a refinance loan or a home equity loan. But if you are willing to take the time to dig a little deeper into the topic, you may be surprised at the number of very viable and downright attractive offers and options. The fact that you have a bankruptcy on your credit report or a past or existing debt consolidation loan does not seem to deter many lenders from various sources in the same way that it may cause traditional lenders to run for the hills.

In fact, many of these lenders are more than willing to offer you an attractive program or rate for a home equity loan or a refinance loan. The reason for this is that they have looked at the bankruptcy statistics and realize that the majority of people who filed bankruptcy did not do so out of their personal financial mismanagement, but more often due to an unexpected financial setback which was totally out of their control, such as a job layoff or huge and unexpected medical bills that your health insurance did not cover.

If your bankruptcy was in the very recent past, even with Chapter 7 or Chapter 13 bankruptcy filings, you may have to wait six months after you have filed to be eligible for all the programs that a potential lender may have to offer you.

Whether or not you have filed bankruptcy, you must realize that in most cases you are able to retain your home, where that is typically not one of the assets that needs to be liquidated to satisfy a bankruptcy judgment. In that light, you almost certainly have some equity in your home, so lenders will look at it as a loan they are making that already has a substantial piece of collateral on it, in the form of your home. In other words, when a lender makes a loan offer, one of the major factors that determines the program or rate they will offer you is their risk factor. That risk factor is partially determined by the applicant’s credit score, but it is also heavily influenced by the collateral that is used to secure the loan, so in the case of having your home equity loan or refinance loan secured by your house, the lender’s risk is minimal.

Even with the loan secured by your home, the fact that you did file bankruptcy will not go unnoticed by the lender. The worst thing you could possibly do is to try to cover it up, because that fact is highlighted in your credit report and is virtually impossible to hide. Based on your filing, you will likely need to pay a slightly higher interest rate that somebody else with perfect credit and no bankruptcy on their credit history, but even so, this could reduce your payments and give you a bit of financial breathing room as you are getting your financial act back in order.

Finding a lender who will consider you with a bankruptcy on your credit report is not hard, but you will need to look beyond the traditional lenders. There are actually companies who specialize in loans such as this. A bit of searching can yield just the right lender as you work towards rebuilding your excellent credit history and putting the bankruptcy behind you.

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All over America, people are charging up credit cards and spending more money than they may have at the time. Sometimes this results in not being able to cover their monthly payments and before they are handed over to debt collectors, some people file for bankruptcy. Bankruptcy does not mean that you have failed; it simply means that you cannot fulfill your financial obligations at this time.

The new bankruptcy law went into effect in the spring of 2005. The new law differs from the old law in that it requires two additional steps for the debtor to complete the process. One step requires a person filing bankruptcy will have to attend an approved Credit Counseling Course within the 6 months before the debtor completes the filing process. Any bankruptcy lawyer can set this course of action for the debtor. In some cases the course can be taken over the Internet. In step two the debtor must attend and complete an approved Financial Management Course before the debt discharge can proceed. In this step, the bankruptcy lawyer can set up this second requirement for the new law.

Another item in the new law will test a person’s finances for approval in bankruptcy proceedings. There are three tests that will evaluate personal income, and to check total family earning and income for a specific state of residence. These tests will check a debtor’s eligibility for bankruptcy. The debtor will additionally have to provide proof of income as well. The mentions that debtors filing Chapter 7 or Chapter 13 bankruptcy, must provide to the trustee, a copy of a tax return or transcript of a tax return, for the period for which the return was most recently done. The new law also mentions that a debtor cannot use state exemptions unless residence has reached a total of at least 2 years. Additionally, the homestead exemption has changed with the new law. A qualified bankruptcy lawyer can provide further details on the law and the process.

There are people who are living beyond their means and they seek help first from bankruptcy attorneys who then suggest counseling or financial aid institutions that can help consolidate your debt. If these people live in California, debtors have the option of being protected under the California state home exemption and may be able to protect all proceeds if you sell your home a year before you file bankruptcy.

In Oakland, if you are 65 or older, disabled, or are 55 or older and live off of less than fifteen thousand dollars a year, you can be protected up to 0,000 in debt. There are many laws in Oakland, and the whole state of California for that matter, that may protect your assets and other properties – monetary as well – during the time you have declared bankruptcy. Lawyers in Oakland are extremely informative and helpful and wish to provide you with the best protection and service there is to offer. No matter what state you live in there it is best to speak to a bankruptcy attorney who can help you decide on the best action for your situation.

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