Credit card companies make getting a credit card as easy as filling out a slip of paper at a baseball game. But getting rid of your credit card debt can be a more complex process.
Bankruptcy is designed to be a secure means of debt relief for people in true need. But there are several options under the bankruptcy umbrellas, and each functions in a slightly different way.
Bankruptcy processes are legally protected by United States law. However, one type of bankruptcy may be better for you than another. For many people, the first step is learning about the different bankruptcy chapters.
Chapter 7 bankruptcy is designed to quickly eliminate all of your credit card debt. Only unsecured debt may be included in this filing, so if you are struggling with mortgage debt or car loans, this may not be a good fit.
Unsecured debt includes credit card, medical and utility bills, as well as personal and payday loans. Chapter 7 cases may last only a few months, which means that you may be back on your feet quickly.
Call Firebaugh & Andrews for a free evaluation 734-722-2999
If you have had a foreclosure or short sale you need to have your credit run by a lender before you start shopping. When I say lender I mean someone who will actually read your credit report, not just look at the score this is critical.
HERE IS WHY:
As the market evolves we are staring to see a lot of buyers that had either a short sale or foreclosure in their past. Unfortunately, even though these buyers are meeting the time frame for buying a home after a short sale or foreclosure their credit is making it impossible. Why you ask? low score? No
Some banks are not updating the credit to show that the foreclosure has occurred and is over, same with short sales. The credit reports instead of reflecting the foreclosure closed 3 years ago are saying things like “foreclosures proceedings started” with a balance and a payment amount. This is a HUGE problem. As a lender we need to see that mortgage liability no longer is due and when the foreclosure occurred. We can look up when the foreclosure occurred but if ZZZ bank is telling the credit bureaus you still owe them money we have an issue. We are seeing this with 2nd mortgages on foreclosures and short sales too. There is no activity but account is open with balances. As one lender I cannot say another bank is lying and give you a loan. I need your credit report to reflect what happened.
How to fix it:
1) Get your credit run so you can see what it says asap. This is a hard pull to your credit so don’t have multiple people do it. You can get your credit score for free at www.CreditKarma.com
2) If it is reporting incorrectly call the credit bureaus and ask them what type of documentation they will require to investigate the issue (generally proof of foreclosure and short sale.
3) Send documentation to bureaus. There response will take 30 days. Generally they will clean it up but if not that means that the bank is saying you still owe them money and at that point you need a to call Firebaugh and Andrews for a free consultation 734-722-2999