“Cases in Review” highlights recent cases that may by of particular interest to consumer bankruptcy practitioners It is brought to you by Consumer Bankruptcy Abstracts & Research and the National Consumer Bankruptcy Rights Center.
Use these charts to help you understand student loan options and processes. Read more
This primer is intended to provide you with an introduction to the subject matter, and does not provide legal advice. The document contains hypertext links to websites created and maintained by other organizations. These links are provided for your convenience, and are not intended to endorse any views expressed on the outside sites, or endorse any particular products, services or organizations. We do not control or guarantee the accuracy, relevance, timeliness, or completeness of the information provided. Student loan programs do change periodically, so be sure to check with the original source for more current information.
By Carrie Reeder
Refinancing after a bankruptcy can seem like an especially difficult challenge, but it doesn’t have to be. Six months after your bankruptcy has been finalized, you can find lenders willing to refinance your mortgage. In fact, refinancing your mortgage can help rebuild your credit to good standing in two year’s time. The following steps will help you find the best refinance lender while helping you rebuild your credit record.
Preparing For Refinancing
Right after bankruptcy, you have six months to prepare to refinance your mortgage. Begin by establishing good payment history by regularly paying your bills and current mortgage. This is also a good time to open a credit card account to start establishing good credit history.
If possible, also start building up a savings account. The more cash assets you have, the better your application will look. Consider having a garage sale or taking a second job to raise funds.
Once you are ready to refinance, research mortgage lenders and their rates. Online mortgage websites allow easy comparison shopping. Look at both interest rates and fees of refinancing quotes. Usually a slightly higher rate with low fees is the best deal.
With bankruptcy on your credit report, you will typically need to work with a sub prime lender. You can expect to pay a few percentage points above a traditional mortgage, which you can find through online mortgage companies.
Choosing Your Refinancing Package
You may be offered a chance to cash out part of your home’s equity when refinancing your mortgage. If you need to make home improvements or buy a car, this may be a good option. However, if you keep your home’s equity in place, you are improving your credit.
Once you have decided on your terms, you can finish your loan application online or through the mail. Quotes are not guaranteed, so rates may vary slightly once your application has been approved. Before the loan is finalized though you have the opportunity to review the loan again.
With your refinancing completed, you can plan to lower your interest rates through refinancing in two years by building up your credit score. Continue to make regular payments and add to your cash reserves. Before you apply to refinance again, review your credit report to be sure your bankruptcy closed all past accounts on your record. With a solid credit history behind you, you can apply to traditional mortgage lenders.
Carrie Reeder is the owner ABC Loan Guide (http://www.abcloanguide.com), an informational website about various types of loans.
To view Carrie’s recommended sources for refinancing after a bankruptcy online, visit this page: http://www.abcloanguide.com/lessthanperfectcredit.shtml.
South Carolina Legal Services Partners with American Student Assistance to Tackle Student Debt
SALT Program Will Provide Free Financial Literacy Counseling
Columbia, S.C. – May 7, 2015 – South Carolina Legal Services (SCLS) has partnered with SALT®, a leading financial education program created by the nonprofit American Student Assistance®, to offer free guidance to South Carolina residents in financial distress, especially those unable to discharge student debt through bankruptcy. The new partnership will be discussed as part of the 2015 Annual South Carolina Bankruptcy Attorney Conference beginning May 8th.
“We believe this innovative partnership can be a national model in our fight against the burden of student debt,” said Andrea Loney, Executive Director of South Carolina Legal Services. “We have witnessed firsthand how student debt has become a roadblock to progress for so many. The financial literacy counseling provided by SALT is critical to ensuring those struggling with debt have the tools to succeed.” Read more
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