Are you preparing for bankruptcy filing? Well, if yes, then consider this article as a smart guide for you. For filing bankruptcy, your papers have to be well managed and apart from that you need a lawyer or financial advisor. You need to create some documentation so that our bankruptcy claim becomes valid. Now you must be itching to know – what are those documents? Well let us a have a look.
If you can complete the complex procedure of means test, which measures your potential income and calculate if you are eligible for bankruptcy filing or not, then it will be sheer beneficial for you. This test is important and if you can pass this, you may consider that half the job is done, even before filing the bankruptcy claim.
A record of income or earning statement is also required for bankruptcy claim. Now, in case, if your earning statement is not legitimate, you may drown into deep trouble. Those, who do not possess a thorough financial statement, often are not considered eligible for bankruptcy filing. Be truthful with your earning report and never conceal any sources of income. If your report or documents are well checked, your lawyer will do the rest to prove you as bankrupted.
Another very important document is tax document. Your last year’s or current year’s document is required for filing bankruptcy. Those do not have any proper tax document, may find themselves in trouble. Keeping record and mage your financial documents is necessary in any which ways. So, be organized with your documents or papers of finance.
After filing bankruptcy, you need to wait for some time to get approval for loans. It is not easy to get approval as your credit score might have been affected greatly. If you have filed chapter 7 bankruptcy, you have to wait for a period of two years since the discharge of bankruptcy to apply for FHA mortgage, and you need to wait for 4 years to get eligible for conventional mortgages. If you have filed for chapter 13 bankruptcy, the period of waiting is 12 months after dismissal for FHA loans and 24 months after dismissal of conventional loans.
High interest rates for loans after bankruptcy
After the specified period of waiting, you can get loans easily if you maintain your credit report since filing bankruptcy. However, you should see to it that your financial dealings since bankruptcy reach the credit bureaus. It is not impossible to get mortgage loans before the specified time. But loans can be availed only from private lenders and the loan is sure to carry higher interest rates. If you want to get guaranteed loans for low interest rates, you need to make a huge amount of down payment. The interest type is determined by your financial behaviour since the discharge of bankruptcy. Loan to value ratio and the credit ratings are the prime factors that influence the interest rates for your loans.
Besides debt to income ratio and the credit ratings, your employment history, the loan to value of the home ratio and the down payment and the income are to be considered. If the credit score is not good, you need to take appropriate measures to improve the credit score and also take the necessary steps to keep yourself eligible for loans. The credit history is most affected after filing and discharge of bankruptcy. With chapter 13 bankruptcy, the impact is on your credit report for a period of 7 years and with Chapter 7 bankruptcy, it is there for 10 years. From the day one after the dismissal of bankruptcy, the credit score improves in par with the credit.
The prompt clearance of bills will improve the credit score and it might reach 600 or more even earlier than the stain gets off your credit report. When you get approved for mortgage against your property, you will be signing an agreement to the agreed terms and the documentation will be forwarded to the lawyer who is to prepare the mortgage document. When you submit your documents to apply for loans, you need to attach the bankruptcy documents. The documents related to your income and the affordable down payments should be presented. With higher down payments, you can expect to get loans for lower interest rates. The specifications for loan approval are same for all the applicants irrespective of filing bankruptcy.
The bills on all your cards and loans should be promptly paid off. Timely payments help to improve the credit score. You will be seen as the consumer who has reformed in a short time. Default on loans is considered very bad after filing bankruptcy and this act prevents you from getting loan approvals in future. You can avail the service of a local mortgage agent who can process your loan very quickly and who can offer personal services. There are online and offline lenders to give you the needed financial aid. The traditional lenders can be approached in person to discuss the options. http://cash-enavi.com/mortgage-after-bankruptcy-is-it-possible/ http://cash-enavi.com/mortgage-after-bankruptcy-is-it-possible/ http://cash-enavi.com/mortgage-after-bankruptcy-is-it-possible/Online lenders enable loan comparison and you can get options of of mortgages after bankruptcy. Understanding the features of these offers will help to make the choice as per your requirements and affordability.