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Dealing with getting loans after a bankruptcy - Bills.com News
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Dealing with getting loans after a bankruptcy
Friday, Sep 18, 2009
By Lance Piper
In a recent column for the Wall Street Journal , June Fletcher entertained a question from a reader who had their debt settled through a Chapter 13 bankruptcy. The reader noted that they were looking for a new mortgage, and that the lender wanted a letter explaining thebankruptcy.
Having supplied it, the lender asked for even further details, which left the reader wondering how they can prove they are worthy of getting credit extended at all.
Fletcher noted that consumers can expect to pay interest rates that are a bit higher when they have a bankruptcy in their past. Furthermore, many lending companies are going to want a detailed explanation for the bankruptcy. That may include showing that medical expenses or a divorce got the person in trouble.
Consumers need to make sure they keep up with their payments now that they settled their debts, because lenders are very likely to check their credit scores and history.
Fletcher said that because lenders may be a bit reluctant
with those who have experienced bankruptcy, consumers are going to need to be cooperative with them.
"But never forget that you're a customer, and entitled to answers yourself, such as why the information requested is needed, and how long you should expect to wait for loan approval," Fletcher said.
According to a recent report from USA Today , the number of bankruptcies filed during August of this year was 22 percent higher than the amount filed during the same time in 2008. The paper also reported there were 954,911 bankruptcy filings during the first eight months of 2009.
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"But never forget that you're a customer, and entitled to answers yourself, such as why the information requested is needed, and how long you should expect to wait for loan approval," Fletcher said.
According to a recent report from USA Today , the number of bankruptcies filed during August of this year was 22 percent higher than the amount filed during the same time in 2008. The paper also reported there were 954,911 bankruptcy filings during the first eight months of 2009.
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• Get a free credit report. Find a professional to correct your credit report. Apply for a new credit card. Visit the Bills.com Credit Card Center .
Also, make sure to get a free financial health check-up with Bills IQ!
• Signs that bankruptcy may be an option Consumers may wonder when they should start considering filing for bankruptcy. Sep 15, 2009
Resources that save you money
• You might reduce your monthly payments by refinancing your mortgage. Get no-cost, online mortgage refinance quotes from up to four prequalified lenders.
• Buying a home? Get no-cost quotes online for competitive, fixed-rate mortgages from up to four providers.
• Reduce your debt up to 50%. Get matched with pre-qualified debt consolidation experts.
• Get a free credit report. Find a professional to correct your credit report. Apply for a new credit card. Visit the Bills.com Credit Card Center .
Also, make sure to get a free financial health check-up with Bills IQ!
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