One of the few negative impacts of an IVA is the effect that it has on your credit score.
But to fully appreciate the reason this is the case, helps to redefine this negative into nothing more than a basic side effect of a better solution than taking further credit.
Firstly, we need to understand what a credit score is and what relevance is there in the strength of our credit score.
Our credit score is a way of measuring our credit worthiness and is generated by credit reference agencies for the purpose of communicating our credit worthiness to potential lenders. Our credit score acts as a marker, designed to enable total strangers the opportunity to judge our credit worthiness at a glance. Read full post…
22 Jul
Posted by Hayley Crosby as Credit Score
Applying for a credit card with bad credit can seem like a pointless endeavor. With the recent constraints of the economy, lenders have become increasingly reticent to extend credit to borrowers. Banks and credit card lenders alike have watched accounts in good standing quickly deteriorate as job loss and unemployment rates skyrocket. However difficult it may be to secure credit, it is not an impossible task. By following some basic guidelines, it is possible to gain access to credit while rebuilding your score over time.
When considering filling out an application for a credit card it is best to find one suited to your financial situation. One of the nest means for obtaining access to credit and rebuilding your credit rating is through obtaining a secured credit card.
16 Jul
Posted by Hayley Crosby as Credit Score
President Obama is expected to reject interim director and Harvard Law professor Elizabeth Warren and appoint Richard Cordray, former Ohio attorney general, to be the director of the Consumer Financial Protection Bureau, according to reports learned by Boston bankruptcy lawyer Neil Burns. The CFPB officially opens July 21. Nevertheless, coming up with the idea for the agency, lobbying for it during the Gramm-Dodd leglislation, and laying the groundwork by “directing” it since its inception, Massachusetts’ Elizabeth Warren and her team have undertaken numerous alliances and endeavors in advance of the opening. Boston bankruptcy lawyers who represent consumers are looking carefully at the regulators to determine what new rules and programs we can pass on to our Massachusetts consumer clients.
Boston bankruptcy lawyer Neil Burns reports good news: the rate of personal bankruptcies was lower in the first half of 2011 than the first half of the prior year. According to the American Bankruptcy Institute statistics, personal bankruptcies were down about 8% for the first half of the year. The numbers are as follows: there were 709,303 personal bankruptcies filed between January 1 and June 30; this is down from 770,117 filed the previous year. Personal bankruptcies were down in June 2011 verses June 2010; 119,768 filings in June this year and 126,270 filed one year earlier, in June 2010. This is a 5% decrease.
Further, ABI finds that during the month of May, personal bankruptcies were down 16% from May 2010; and, ABI reported in early May that bankruptcies were down 7% verses the prior year’s April.
Will the foreclosure crisis continue in the United States? Will there continue to be record foreclosures in Massachusetts? Will record Massachusetts bankruptcies continue? Massachusetts foreclosures are down 67% from last year, yet there are thousands of Massachusetts properties in or near foreclosures. According to real estate researchers, 23% of households nationally are “underwater” in their mortgages; research reporting company Zillow claims that the number is closer to 27%. Furthermore, if you count the true costs of selling, such as realtor fees, moving and closing costs, an even larger number of folks have “effective negative equity” in their homes. There are two million homes in foreclosure or for which the homeowners are behind in their mortgages.
What is the historical context of this?
Bottom line: it is very hard to discharge student loans in Massachusetts bankruptcy. The law requires that you affirmatively prove an “undue hardship” and it’s hard to prove unless you are permanently disabled. The following is an outline of what steps you can undertake, however. We have previously written about a financial education and this article is an overview of what to do to get started. Note that student loans may not be dischargeable in bankruptcy in Massachusetts, but you can still file for bankruptcy protection and get a fresh start by getting rid of all your credit card debt.
In 2008, 7% of those that were to begin paying back student loans defaulted. Thus, don’t take out more student loans than you can reasonably foresee paying back This may seem simple, however, just because they are available, does not mean you should avail yourself of the privilege.