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american bankruptcy institute
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Getting a 2nd mortgage loan or home equity loan after a
bankruptcy is workable. However, loan applicants should be aware
of certain disadvantages to bad credit loans. A bankruptcy is
destructive to credit scores.
In reality, many financial experts discourage bankruptcies.
Those who file Chapter 7 or Chapter 13 are subjected to higher
finance rates on homes, cars, etc. Before applying for a 2nd
mortgage, know what to expect and understand the basics of
getting a reasonable rate.
Expect Higher Finance Fees or Interest Rates
After a bankruptcy, many people are hesitant to apply for
credit. They expect higher rates, which will also increase
monthly payments. However, obtaining new credit accounts is
crucial Click here to read more from this article
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There are 2 sides to the changes in bankruptcy rules. It will be
a lot harder to file bankruptcy under chapter 7 and get a
totally clean slate.
For businesses, relying on issuing credit, the new personal
bankruptcy law is doing great, reducing personal bankruptcy
claims from the thousands to double digits.(In the short run).
However, lawyers working with the actual people filing for
bankruptcy say that the new law is seriously flawed because it
puts more financial burdens on already broke clients and reduces
potential debt repayment to small businesses.
And then of course you have the credit card companies charging
high interest rates which in quite a Click here to read more from this article
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