Tag: Secured Credit Card

Consumer Bankruptcy

How to Get a Home Loan After Bankruptcy

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Filing for bankruptcy is not an easy decision. But while filing for bankruptcy can be emotionally challenging, it is a relatively common option to choose. Annual bankruptcy filings totaled 452,990 in 2023, according to a report from the Administrative Office of the U.S. Courts — an increase of nearly 17% compared to 2022, when 387,721 bankruptcy cases were filed.

Oftentimes, it is easier to reestablish credit after filing bankruptcy, because you are essentially given a “clean slate.”

Here are 5 Tips for Getting a Home Equity Loan After Bankruptcy.

  • Timing is everything. Depending on the type of bankruptcy filed, it is crucial to recognize that lenders typically become more willing to work with you as time passes. Be proactive about increasing your credit score after bankruptcy and lenders will view your financial situation more favorably.
  • Rebuild your credit. After filing for bankruptcy, obtain a copy of your credit report to confirm that everything is accurate. Rebuilding your credit should be a top priority. That means paying your bills on time, reducing outstanding debts and using a secured credit card.
  • Shop around. Home equity lenders have different requirements when it comes to lending ‘post-bankruptcy.’ It is in your best interest to take the time to research those lenders who offer terms that are most favorable to you. Compare interest rates, fees, terms and conditions of the loans.
  • Consider a co-signer. A co-signer with a strong credit history can significantly increase your chances of being approved for a home equity loan following bankruptcy. When you add a co-signer to the loan you are essentially vouching that they will repay the loan if you are unable. However, it is important to recognize that co-signers are equally responsible for the loan, and any default can negatively impact that person’s credit.
  • Highlight positive financial changes. When applying for a home loan after bankruptcy, it can be helpful to provide the lender with evidence of positive financial changes you have made since filing.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

SOURCE:

6 tips for getting a home equity loan after bankruptcy – CBS News

Bankruptcy Law

Tips to Recover Quickly from Bankruptcy

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Bankruptcy offers consumers a fresh financial start, but many people hold off on filing bankruptcy for fear of the negative effect it will have on their credit.  This is one of the most common bankruptcy myths,  and can keep individuals who are drowning financially from filing for bankruptcy. Bouncing back after bankruptcy is possible, and with proper discipline, it can be done relatively quickly.

According to a recent study by LendingTree, 65 percent of people who filed for bankruptcy in 2017, had a credit score of 640 or higher in two years.  The following tips can help you bounce back quickly after bankruptcy.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How to Improve Your Credit After Bankruptcy

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The decision to file for bankruptcy is a tough one to make, but it is often the first step in gaining control of your financial future. A common concern people have when filing for bankruptcy is the effect it will leave on their credit score and their ability to access credit, again. While bankruptcy does affect your credit score, it is sometimes the last resort to rebuild your credit and your life.

In fact, it is oftentimes easier to reestablish your credit after filing for bankruptcy, because you are essentially given a “fresh start.”  Here are some quick tips to help rebuild your credit after filing for bankruptcy.

  1. Pay Your Bills on Time. Take full advantage of your financial fresh start. Make consistent and timely payments on all of your bills and any remaining debts moving forward, like your mortgage and car payment. These consistent payments over time will help improve your credit score and re-establish your credit.
  2. Monitor your Credit Report. Make sure and check your reports every few months for errors. Confirm that any negative marks (i.e. – your discharged debts) have been removed.
  3. Use a Secured Credit Card. With a secured credit card, you deposit with the lender an amount equal or nearly equal to the maximum credit line on the card. Unlike with a debit card, your payment history for a secured card is reported to the credit reporting agencies.
  4. Budget. Create a realistic budget for yourself. Review your finances several times per week to ensure you are sticking to your budget.
  5. Set up Auto-pay. Set up automatic payments for your cable, Internet and phone bills, so you do not miss your payment due date. Again, watch your finances closely so that you know when money will be coming out of your account.

There are proven ways to rebuild your credit score after bankruptcy, and our clients are proof!

My credit score said on all three reports 775, I couldn’t believe that I had such a great score before 10 years. Tim for me was the best move I have made for my situation. I have no regrets; I am glad the past is the past. – Bill T.

Hi Tim- I just wanted to send a quick note and thank you and your team for handling my bankruptcy case.  It is only a month or two after discharge, and my credit scores are already in the upper 600’s. – C.S.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Source:

https://www.thebalance.com/how-to-improve-your-credit-score-after-bankruptcy-316108

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Rebuilding Your Credit After Bankruptcy

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Chapter 7 bankruptcy allows you to get a fresh start financially and erase past debts, but a legitimate concern consumers have is the effects it will have on their credit score and their ability to take out credit again.

One of the biggest misconceptions about filing for bankruptcy is that it will ruin your credit score and your financial future.  To the contrary, after filing for bankruptcy you can begin restoring your credit right away.

Here are some steps you can take to begin rebuilding your credit after filing for bankruptcy:

Create a budget.  This will help you stay on top of your finances and is something you should have gone over in the “pre-discharge” credit counseling.

Build an emergency fund.  Research shows that having as little as $250 saved up for an unexpected expense can protect families from having to resort to pay day loans and credit cards.

Plan your post-bankruptcy credit strategy.  Assess your situation by first checking your credit score.  Dispute any inaccurate information on your credit report and have this corrected immediately.  Remember, a Chapter 7 filing will wipe out your debts, but it does not wipe your credit reports clean.  Make sure and double check all three reports.

Here are some ways to access to new credit while rebuilding your score.

Secured loans are typically offered by credit unions or community banks.  One type of secured loan involves borrowing against money you already have on deposit.   The other type can be made without upfront cash.  Instead, this money is loaned to you and is placed in a savings account and released to you only after you have made the necessary payments.  In return, the financial institution agrees to send a report to the credit bureaus.

A secured credit card is backed by the deposit you make and the credit limit is typically the amount you have on deposit.  This can help repair your credit while you wait to become eligible for an unsecured card.

A co-signed credit card can improve your score, but it is definitely a big ask. Essentially, this individual (the co-signer) is risking his or her own credit history for you and will be on the hook if the full amount is not paid on the card.

If asking to co-sign is too much, an authorized user status will work.  Basically, you are an authorized user on that person’s credit card.  Just make sure the credit card will report the payment activity by authorized users to the credit bureaus, otherwise it will have no effect on your score.

A lighter debt burden automatically makes you more desirable to lenders, so be vigilant about paying on time.  Keep your credit card balances relatively low compared to the card’s limit.  For example, less than 30% is typically advised while using just 10% of the available credit is even better.

Still not convinced?  A testimonial from one of our clients in regards to their credit score after filing for bankruptcy.

My credit score said on all three reports 775, I couldn’t believe that I had such a great score before 10 years. Tim for me was the best move I have made for my situation. I have no regrets, I am glad the past is the past. – Bill T.

If you have any questions on this topic or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources:

https://www.nerdwallet.com/blog/finance/rebuild-credit-after-bankruptcy/

Bankruptcy Law, Credit, Debt Relief, Florida Bar

Life After Bankruptcy

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You have filed for bankruptcy and are looking forward to a fresh start. However, your credit rating has taken a substantial hit. The bankruptcy is likely to stay on your credit report for ten years, therefore, for a period of time it may be difficult to get a loan or credit card. However, you can take these steps after your debts are discharged to take advantage of your fresh start.

Start an Emergency Fund

If you filed a Chapter 7 bankruptcy, you have likely had most of your debts discharged. This means that your salary is yours to spend and you will most likely be living on cash rather than credit. It is imperative that you build an emergency fund with your extra cash.

Rebuilding your Credit

In order to restore your financial life, you have to rebuild your credit. You can begin establishing good credit immediately after your debts have been discharged. However, it may take some time to build up your credit score. If you own your home, paying your mortgage on time is a good place to start. Mortgage lenders report to the credit bureaus.

Adopt a Positive Attitude

Experts agree that attitude and persistence make a huge difference in your life after bankruptcy. For example, if you start a savings account, carry no debts and have an emergency fund, you are telling yourself that you can take control of your finances.

First New Credit Card

Once you have established good spending and financial habits, you can apply for a secured card as soon as six months after your debts are discharged. Secured cards allow you to put money in an account and the credit card company will give you a credit limit of that same amount. You pay the bill as you normally would and then get the deposit back when you close the account or switch to an unsecured version.

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If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.