Monthly Archives: November 2023

What circumstances will allow you to include your school loan in your bankruptcy.

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Every year, millions of students are convinced to take on student loans with promises of huge salaries upon graduation, but often the reality is a bit different and these same students are left with an enormous debt and little or no means of repayment. Indeed, these debts can last for decades.

Millions cannot afford to repay their student loan, some may think that filing chapter 13 can be done with your school loan but it is not 9 out of 10 times. Now what circumstances may allow you to include your school debt into your bankruptcy?

The very rare exception is when one can show at the time of the bankruptcy that the debt created by the student loans is going to create an unreasonable burden to the debtor and that the debtor will never be able to make payments, often because of a disability or other circumstance beyond the debtor’s control. Absent that, the debts to federal student loan companies are exempted from bankruptcy and will not be discharged. If you believe you are in such a situation contact Firebaugh & Andrews are these circumstances are very rare and there is only one way to find out, call us now for your free consultation 734-722-2999.

Bankruptcy And Bad Credit Issues No Longer Means No Mortgage

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Just because you have been bankrupted doesn’t mean it’s impossible to become a home owner again soon. This articles blows away the myth that you will have to wait 10 years to get a mortgage if you have been personally bankrupted.

In the past, traditional mortgage lenders have automatically rejected people who had declared personal bankruptcy.  Many potential home-buyers felt they must wait at least seven to 10 years after a bankruptcy to be eligible to become homeowners. This is a common misconception for many who believe their chance of home ownership is a long way away.

While some people declaring bankruptcy have had trouble managing their money, a large number of those declaring have simply experienced unfortunate events. Americans are filing bankruptcy at record-high levels over the last 10 years.

There are some ominous signs out there…

Though a bankruptcy is certainly a blemish on a credit report, it does not necessarily disqualify a borrower. Recognizing that sometimes bad things happen to good people, some select loan officers are becoming more willing to take a calculated risk.

Some lenders use a securing system to determine whether potential buyers are a worthwhile risk. Unfortunately, bankruptcy gives a low rating. However, select lenders are beginning to look beyond the rating and look at the individuals in need.

Instead of waiting two or four years after being discharged from bankruptcy, some mortgage professionals are willing to give a home loan much sooner. Those who have declared bankruptcy liquidation may be eligible for a loan one year after discharge.

Another common misconception is that a previous bankruptcy on your credit report will require you to have a large down payment and pay extremely high interest rates. There are currently programs available with as little as 5 percent down with very attractive rates.

Some lenders are even pre-qualifying buyers for a loan, saving time and making the home-buying experience easier and more efficient. When a buyer pre-qualifies they will have the advantage of greater negotiating power.

No matter what the situation, select mortgage professionals have a program that will work for the buyer with a bankruptcy history. If a buyer cannot get approved, there are customized plans that can re-establish credit to help the buyer become mortgage-ready, ensuring home-ownership in the future.

Because of new options, bankruptcy no longer needs to stand in the way of getting a home loan. With the help of more creative lenders, those who have experienced financial difficulty will have an easier time getting a mortgage.

For a free consultation call Firebaugh and Andrews. 734-722-2999