According to the Bankruptcy Code lists 19, personal loans are typically dischargeable when you file for bankruptcy (chapter 7). You can file for bankruptcy with a court yourself or with the attorney. You will have to pay for a few fees including attorney and filing fees. You will still have to pay for the filling fee even if you file for the bankruptcy yourself. Several documents must be prepared when you are filing for bankruptcy including financial record for your asset, debt and expenses.
Prior to filing, you should receive credit counseling with an approved provider. The credit counseling should take place within 180 days. Upon completing the course, you will receive a certificate. The certificate must be attached along with the application form otherwise they will reject your filing.
If you keep on receiving calls from your creditor, you should provide them with your case number and filing date. Doing so can stop them from bugging you with phone calls. The filing date can be found on top of the bankruptcy document that the court send to you. It is next to the page where your case number is.
You should receive the bankruptcy document along with all copies of the notices even if you have a lawyer to represent you in the court. By providing your filing date, the creditor will be able to verify your bankruptcy and stop making cold calls. Sanctions can be taken against the creditor if they did not stop making phone calls.
The majority of the people who are forced to file for file for bankruptcy are not considered to be wealthy or rich. The median income is only about $35,000. Filing for bankruptcy allows you to be discharged from your debt and also slow down the repossession of your house and car. It will also affect your credit rating as the record will stay on your credit report for up to 7 years. It also help to put an end to the collection actions that your creditor has taken against you like eviction, wage garnishment or entering into liens.
Filing for bankruptcy gives you a second chance to start all over again but it have a long term punishment. During this time, it will be hard for you to get a loan because of the record in your credit report. It is a strenuous process that can take at least 6 months or more to solve the situation.
However, it is a good time for you to think things over and plan. You can how to you can become financially disciplined and have a fresh start again. It is best for people who believe that they will take over 5 years to repay the debt. There are other alternatives like debt settlement or debt management that can take up to 5 years to solve the problem.
The amount you can borrow from the p2p lending platform usually ranges from $1,000 – $40,000. You have to post a thread on the p2p platform stating how much you would like to borrow. Investors will visit your thread and place a bid on how much they would like to fund a loan. The loan can get approved as long as you have 70% funded. As soon as it is approved, you will be able to receive the fund in your bank account within a period of 2 weeks.
As you know, p2p lending platform is different from traditional banks and lenders. They do not fund the loans based on their own capital. Rather, the loans are funded by individuals who have jointed the platform to lend money to people. These individual lenders make money from the interest rate and other fees charged on the borrower. They decide how much interest fee you have to pay.
Usually, when you apply for a loan on the p2p platform, the company will first perform a background check on you and then assign a grade. They will not reveal the grade to you. Only the investors will be able to see the grade. The grade shows whether you are someone who is responsible in financial management.
The interest rate that you pay will be based on the grade that you receive. The investor will take a look at your grade and decide whether they want to extend the loan to you. The advantage of taking out this type of loan is that it has a low interest rate starting from around 6% – 10%. Having an excellent credit score can help you to obtain the lowest interest rate for the personal loan.
Besides the interest rate, you also have to pay an origination fee. The origination fee may range from 1% – 6% of the loan amount and it will be deducted directly from the loan amount. Most p2p lending platforms have a minimum credit score requirement of 600 – 650. You can apply the loan as a joint application. In joint application, one applicant must meet the credit score requirement and the other applicants can have a lower credit score. The credit score of the other applicant must be not lower than 540.
P2P loans can be used for debt consolidation purpose. Some lenders can pay off your creditors directly so that you don’t have to submit the payment manually. Only a certain percentage of the loan can be used for debt consolidation. Prior to applying, you can fill in the loan request form at the official site to get pre-qualified first. Pre-qualifying for the loan will not cause your credit score to drop in anyway.
Sofi loan is suitable for refinancing an old personal loan because of the relatively low-interest fee. The interest fee for the Sofi personal loans is from 5.49% – 13.49%. The average interest fee of a 3-year loans at Sofi is 8.9%. Choosing the shortest repayment term enables you to get a lower interest fee.
Having a good credit score also play a role in helping you to enjoy a lower interest fee. You have the option to choose a fixed or variable interest rate. Fixed rate means you the same installment fee every month. Variable rate is low at first but it is likely to increase during the lifetime of the loan. It is wise to choose a variable rate loan if you take out a short-term personal loan to consolidate your debt.
Sofi debt consolidation personal loan is ideal for people who are tired of having to make multiple payments every month. The lower interest rate makes it possible for you to pay off the loan in a shorter period with more excess cash for you to spend on other things. Besides, they do not charge any origination, prepayment and personal check processing fees. There is a 4% or $5 whichever is lower late fee as a penalty for waiting until after the 15 days grace period to make payment.
With Sofi, you can borrow an amount from $5,000 up to $100,000 to consolidate your old debts. The amount that you get approved will depend on your disposable income, debt to income ratio. The disposable income is calculated by deducting your monthly expenses from your gross monthly income. Credit score is not the main factor that is being taken into account by Sofi when determining whether to approve the loan.
Residents of California and Michigan can check their rate by filling in a loan request form at the official site. If you live in other states, you will have to compare the rates at other loan comparison sites. Filling in the form to check if you will get prequalified for the personal loan. To get qualified, you need to have a good credit score that is above 660. You can easily get approved if you have a credit score of 700 or higher and a median income 101,000.
Getting a debt consolidation at Sofi does not reduce the amount of your actual debt. It simply makes it easier for you to repay it by lowering the interest and fees. After you get approved, make sure you focus on repaying the due amount promptly. Sofi does report to the credit bureau so your repayment will affect your credit score. You will see more points add to your credit score within a few months of making prompt repayments.