Saturday, April 11, 2009
HOME EQUITY LOANS VS BANKRUPTCY
Over the year's bankruptcy law under goes certain significant change. Some of them are
a) The income of a person will be verified with two-part means text to judge whether the person is qualified for chapter seven or chapter thirteen.
b) A person must appear for consumer a credit-counseling program before filing bankruptcy, which must be approved, by United States Trustee’s office.
c) There will be arbitrary audits by the bankruptcy court to check whether the documents are correct or not. If not then the lawyers could be fined.
d) And a person must appear for financial management class at his or her own cost.
Moreover, a chapter seven stays on the credit report for ten years and a chapter thirteen-bankruptcy filing stays on the credit report for seven years. So filling bankruptcy is a very dangerous decision. So instead of taking in so much harassment a person easily apply for a bad credit home equity loan. The benefit of this loan is that a person can pay his or her all the due to the creditors without damaging the credit score by lowering the debt ratio.
Though the rates are higher than those with a good credit report, but still lower than the high interest that can be more than 18% interest of any credit card and much better than thirty percent interest that a person might have to pay due to miss payment on only one credit card.
Refinancing a financial problem can save a person from the trauma because of his effort in getting home equity loan once declared bankruptcy that is even worse than a receiving a bad credit loan. Moreover, a home equity loan can will also help a person to keep the house. Therefore, it is always advisable to go for a home equity loan rather than filing bankruptcy to avoid financial problems.
a) The income of a person will be verified with two-part means text to judge whether the person is qualified for chapter seven or chapter thirteen.
b) A person must appear for consumer a credit-counseling program before filing bankruptcy, which must be approved, by United States Trustee’s office.
c) There will be arbitrary audits by the bankruptcy court to check whether the documents are correct or not. If not then the lawyers could be fined.
d) And a person must appear for financial management class at his or her own cost.
Moreover, a chapter seven stays on the credit report for ten years and a chapter thirteen-bankruptcy filing stays on the credit report for seven years. So filling bankruptcy is a very dangerous decision. So instead of taking in so much harassment a person easily apply for a bad credit home equity loan. The benefit of this loan is that a person can pay his or her all the due to the creditors without damaging the credit score by lowering the debt ratio.
Though the rates are higher than those with a good credit report, but still lower than the high interest that can be more than 18% interest of any credit card and much better than thirty percent interest that a person might have to pay due to miss payment on only one credit card.
Refinancing a financial problem can save a person from the trauma because of his effort in getting home equity loan once declared bankruptcy that is even worse than a receiving a bad credit loan. Moreover, a home equity loan can will also help a person to keep the house. Therefore, it is always advisable to go for a home equity loan rather than filing bankruptcy to avoid financial problems.
Posted by Saul at 5:33 AM
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