Should I refinance or file for bankruptcy?
Question by just a girl: Should I refinance or file for bankruptcy?
My credit is poor so, if I refinance I will be paying a very high interest rate but, if my credit is already bad anyway should I just file for bankruptcy?
Best answer:
Answer by curmudgeon
unless you owe lots of $ $ , don’t use bankruptcy. Like over 50,000$ .
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Tags: file for bankruptcy, mortgage refinance
If you refinance, it should at least improve your interest rate somewhat. Have you called a debt consolidator? I would say avoid bankruptcy at all costs. How much debt are we talking about (if you don’t mind me asking)?
I would file for bankruptcy as an absolute last resort, especially if you are young. Speak to a financial adviser or try a free credit counseling service. The bankruptcy will just hold you back.
Refinance if you have to and can afford the payments. In three years, if you keep your nose clean and make all payments on time, you can refinance again with a much better credit report, therefore a much better interest rate. If you file for bankruptcy, it will be on your report for seven to ten years, and you are still going to be paying a high interest rate. Bankruptcy should always be the last resort.
Filing for bankruptcy will affect you for years. Avoid it at all possible costs. Try to talk to a credit counselor. Call the accounts you owe money to and try to negotiate lower payments for awhile. Look into a second part time job to add to your income.
You should always try to refiance first! There are lenders out there that will refinance down to a 500 score. The interest rate will be higher yes, but a very good loan officer will make sure taht it will benefit you before you start the process. DO NOT PAY FOR AN APPRAISAL until you know what your payments are, closing costs, and who you are paying off.
In the United State President Bush changed some laws. One law was to toughed up on the Bankruptcies making it almost impossible to file a chapter 7. Almost all will be a Chapter 13, you will be paying it off with no time limitation (this means you can be in Bankruptcy for 3, 5, or even 10 years) either way you will not be able to refiance for 1-2 years after you started the procedings. You need someone with a solid credit background and years of experience (5 years loan officer with credit repair specialty) to determine which is the best route to go.
This is just my opinion ~~~ to file for bankruptcy is the lazy way out of a problem and lacks soul. If your asking should you refinance your house the answer is NO, NO, and NO again!!! Find another way. If you mean go to someplace that will consolidate your bills and charge a reasonable amount for it ~~~ I’d say YES.
Take good care ~~~ with hard work and patience ~~~ this too will pass.
AND ~~~ DON’T USE CREDIT CARDS EVER AGAIN ~~~ THEY ARE POISON TO THE SOUL!!!
For people in your circumstances it’s recommended that you make direct contact with your current lender to work out possible solutions, to include the merits of refinancing, before considering any steps towards bankruptcy. A second option is to sell the property if you cannot afford to keep it.
I agree with Maria. File Bankruptcy as a last resort. I filed almost two years ago when I found there was no way out for me due to exorbitant medical bills and debt my deceased husband left me with and I had no idea about. Including my school loans (which cannot be included) I was in debt over 100k. Is it something you can pay off? Or is it an exorbitant amount you are looking at? As for Scotty. Bankruptcy is NOT a LAZY WAY OUT!!! Unfortunately, some people have no resort but to take this route. I never had on my to do list “When I grow up I’m going to file for bankruptcy.” Will be praying for the day when you find yourself in a hell of a bind and looking at bankruptcy court. >:->
don’t do it unless it was a necessity.
because bankruptcy hurts you until it clears of your account.