Daily Archives: January 15, 2015

Bouncing Back From Bankruptcy

Maybe you are afraid of filing bankruptcy because of all  bankruptcy bounce

the bad things you heard (from creditor) that would happen

to you.

Or, you did file bankruptcy, and want to keep your credit

on the straight and narrow.

The Credit.com blog has some ideas on bouncing back from bankruptcy.

I will comment on their ideas, but start with the Consumer Protection Finance Bureau on shopping for mortgages.

How Can I Get A Mortgage After Filing Bankruptcy?

I get this question all the time.

Folks think they will never qualify, or have to pay exorbitant interest rates.

So, do NOT assume that because you filed a bankruptcy, NO ONE will give you a mortgage.

Now, if you left a home and did not pay the mortgage on it during your bankruptcy case, THAT mortgage company will probably never lend to you again.

But, there are LOTS of mortgage companies out there.

The FHA rules on mortgage insurance were just loosened to make it less expensive.

The Fed is still giving banks and mortgage companies money to lend.

And they want to make money.

So, check around.

I always advise clients, and, everyone else, check your credit report regularly.

Unfortunately, bottom feeding zombie debt buying companies buy debts, which you may or may not owe, and, make no attempt to collect, other than putting the bad mark on your credit report.

And, when do you find this out?

Why, when you go for a car loan, or refinancing your house.

Some little debt is on there that the mortgage company tells you must be satisfied, or it cost you another quarter point of interest, or, scotches the deal altogether.

Keep Your Bankruptcy Papers

I also get lots of calls, 2 or 3 years after the case, from clients who cannot find their paperwork.

My theory is that people do not want to be reminded of this part of their lives, and, the bankruptcy papers disappear.

But, now, some creditor, frequently a mortgage company, wants to see the list of creditors that were discharged in the bankruptcy case.

So, stick them away with your tax returns and other stuff you keep.

Credit.com talks about keeping a budget and an emergency fund.

These are Dave Ramsey ideas too, although he did not think of them first.

Keeping track of what you make and how much you spend is a good way to stay out of bankruptcy court.

And we should all have an emergency fund.

OK, I don’t really have one, but, I should.

Credit.com’s last point is5. Think About New Credit.”

Not one of mine.  The Ramsey way is save for what you want, then buy it.  Avoid debt.

If you keep up on your credit report, and stick to your budget of expenses you can afford, your credit score has to improve anyway.

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