Finding yourself suffocated in a mountain of debt is never easy. Admitting that the problem lies in your poor spending habits can take years, and by then, you may only be faced with a few choices.
One of those ways out may be filing bankruptcy. A chapter 7 lawyer orlando fl is one person who may be able to help you shed some of the weight that pulls you down. Chapter 7 and Chapter 13 bankruptcy filings are the two most popular means for individuals and couples to get a resolution to the suffocating problem. Find out three of the key differences between the two, so you can decide if one will work better for you.
1. Chapter 7 Liquidates Some Assets
When you think of bankruptcy, you probably envision someone telling you what you can and can’t keep. Chapter 7 filing, is as close to this vision as any other route. A trustee is appointed who will help you put your debts in order from secured to unsecured. The trustee will also review all of your assets and suggest the things that should be liquidated or given back to the lienholder in the case of secured debt. Some states allow you to keep your home and a vehicle under Chapter 7.
2. Chapter 13 Creates a Payment Plan
Chapter 13 may work for those who have enough income to pay off some of their debt in installments. Again the trustee puts obligations in order and then helps negotiate a reasonable sum for each. All of the debts are added and split into monthly payments which last from three to five years. Once the payment plan is fulfilled, the remaining debt is discharged from the credit.
3. Chapter 7 Stays on Your Credit Longer
Chapter 7 bankruptcy may be helpful to take care of sizeable debt; however, since you are not paying everything off, it can linger on your credit longer. A typical Chapter 7 remains ten years after discharge. Chapter 13 is usually gone after seven years.
Speaking with someone about your options is the best way to go when facing an uncertain future.
If you decide to buy a home, chances are you will apply for a mortgage. Understanding how mortgages work can help you determine how much spend on a home. Here are some of the most important factors that affect what sort of mortgage you can qualify for.
The current mortgage interest rates can affect the terms of a home loan. Your unique circumstances may determine what sort of rate you qualify for. The Best Mortgage Companyis one that will help you understand the relevant factors, such as your credit score, the location of the home, and the length of the mortgage. A good lender can also help you attain the best possible loan terms.
Eligibility for Special Loans
While conventional mortgages are fairly common, there are other loans that you may qualify for. For example, if you served in the military, you may have access to a VA loan. If you meet certain eligibility requirements, you could qualify for a USDA loan for a rural property.
The amount of your down payment can also affect the terms of the loan. If you have the cash to provide a large down payment, you may qualify for a more favorable mortgage with advantages such as a lower rate or a shorter loan term.
A lender like Sun West Mortgage can help you understand your mortgage options. Factors including your credit score and down payment can affect your eligibility.
Most people have experienced a time when they needed money but were in between paychecks and low on savings. While some of these people may have the required credit for short-term loans at traditional banks, others will need another option. A cash advance loan can be a viable option for the responsible borrower.
Bad Credit Welcome
For those living paycheck-to-paycheck, it is difficult to maintain an above average credit rating. Thankfully, you can find a cash advance lender Mississippi who does not require a credit check, only proof of income and a valid ID.
A cash advance may also be referred to as a payday loan, and these types of loans typically have a quick turnaround, meaning that you can receive the money the same day as the application and that the loans are usually only for one to two weeks and no longer than a month, until you get your next paycheck.
Payday loans are undeniably convenient for individuals uncommonly strapped for cash. However, it is necessary to be a responsible borrower. The interest of payday loans is higher than an average loan, and that is due to the increased risk to the lender. When a loan is provided without a credit check and solely based on stated income, then the financer is taking all the risks when it comes to repayment. Unfortunately, if an individual continually borrows, this means that they will likely find themselves in a cycle of paying high interest every month and requiring the cash advance to survive.
A cash advance is an excellent tool for those who need money in between paychecks but don’t what the hassle of traditional loans or credit checks. However, while a convenient option, it is necessary to borrow responsibly to avoid a negative cycle of repayment and interest. If you would like to discuss the benefits of a cash advance as well as how to borrow responsibly, then contact a local lender or financial institution.