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6 tips for getting a home equity loan after bankruptcy
Filing for bankruptcy can be a challenging and overwhelming period in your financial journey. But while the bankruptcy process can be tough, and can result in serious financial hurdles, it’s also a relatively common option to choose. For example, annual bankruptcy filings totaled 452,990 in 2023, according to a report from the Administrative Office of the U.S. Courts — an increase of nearly 17% compared to 2022, when 387,721 bankruptcy cases were filed.
Given the current challenges posed by today’s economic environment, the increase in bankruptcy filings year-over-year makes sense. For starters, persistent inflation issues have led to higher prices on consumer goods, causing budgets to be stretched thin. And, the current high-rate environment has led to hefty borrowing costs across the board, putting even more strain on many people’s finances.
But if you’ve filed for bankruptcy recently — or are planning to — it’s important to understand that bankruptcy does not have to be a dead end. In fact, it can be a starting point for rebuilding your financial health, and if you’re a homeowner, obtaining a home equity loan may be a crucial step in that process. That said, it won’t be an easy path to securing a home equity loan after bankruptcy, but the below tips can help.
Compare your home equity loan options online here.
6 tips for getting a home equity loan after bankruptcy
Getting a home equity loan after a bankruptcy can be difficult but there are ways you can improve your chances of approval. Specifically, borrowers will want to:
Understand the timing
Bankruptcy can stay on your credit report for anywhere from seven to 10 years, depending on the type of bankruptcy filed. While this might seem discouraging, it’s crucial to recognize that lenders typically become more willing to work with you as time passes.
As the bankruptcy filing moves further into the past, lenders may view your financial situation more favorably, upping your chances of getting approved for a home equity loan. So rather than applying right after a bankruptcy filing, be patient and proactive about your credit during that time instead.
Learn more about the home equity loan rates you could qualify for here.
Rebuild your credit
After bankruptcy, rebuilding your credit should become a top priority. Start by obtaining a copy of your credit report to ensure accuracy. Then, focus on paying bills on time, reducing outstanding debts and gradually improving your credit score.
Establishing a positive payment history will demonstrate to lenders that you are committed to financial responsibility. You can also consider using secured credit cards or becoming an authorized user on a friend or family member’s credit card to add positive information to your credit report.
Shop around for lenders
Not all home equity lenders will have the same criteria or policies regarding post-bankruptcy lending — the same way that not all lenders offer the same types of loans, terms or rates. So, if you’re looking for a home equity loan after bankruptcy, it can benefit you to take the time to research and shop around for lenders who specialize in working with borrowers who have experienced financial setbacks.
For example, while traditional banks may have stricter requirements, there are financial institutions and online home equity lenders that may be more flexible in their evaluation process. As you conduct your search, be sure to compare interest rates, terms and fees to find the most favorable option for your circumstances.
Consider a co-signer
A co-signer with a strong credit history can significantly enhance your chances of securing a home equity loan after bankruptcy. When you add a co-signer to a loan, they’re essentially vouching for your ability to repay the loan, giving lenders added assurance — which can be vital after a bankruptcy.
However, it’s important to recognize that the co-signer you use is equally responsible for the loan, and any default could negatively impact their credit, so be sure that you have the ability to repay the loan before adding another party to the obligation. Open communication and trust are key when involving a co-signer in the loan application process.
Highlight positive financial changes
When applying for a home equity loan after a bankruptcy, it can help to be prepared and provide evidence of positive financial changes you’ve made in the time since. This could include stable employment, increased income or successful management of other debts. Demonstrating responsible financial behavior and a commitment to improving your financial standing will make a positive impression on lenders. That, in turn, can enhance your chances of being approved for a loan.
Seek professional guidance
Navigating the complexities of obtaining a home equity loan after bankruptcy can be challenging, so seeking professional guidance can be a wise move in some circumstances. For example, it may help to consult with a financial advisor or mortgage broker who specializes in post-bankruptcy financing. They can provide personalized advice based on your specific situation, help you understand the requirements of different lenders and guide you through the application process.
The bottom line
Securing a home equity loan after bankruptcy is undoubtedly a challenging task, but it’s not impossible. By understanding the timing, actively rebuilding your credit, shopping around for lenders, considering a co-signer, highlighting positive financial changes and seeking professional guidance when you need it you can increase your chances of obtaining a home equity loan that works for you. The process won’t be easy, though, so patience and persistence are key elements in your journey toward financial recovery.
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2 sisters, 7 years apart in age, also receive heart transplants 7 years apart in Chicago
CHICAGO (CBS) — Two sisters have grateful hearts after they both received heart transplants at the same age—seven years apart.
Younger sister Meredith Everhart and older sister Abbey Cannon are now bonded by a genetic condition and a second chance at life.
“What’s ironic is that when she needed a heart transplant, was exactly the same age I needed a heart transplant,” said Cannon. “Seven years apart in age, seven years apart within 30 days of transplant, and our birthdays are within 30 days.”
The sisters share a special bond of getting a second chance at life, which they both received at the age of 38 years old.
Both sisters suffer from hypertrophic cardiomyopathy—otherwise known as HCM.
The genetic condition is a form of heart disease that causes the heart muscle to thicken.
In 2012, Cannon had chest pain. She was misdiagnosed in Nashville, Tennessee, and got a second opinion at Northwestern Medicine in 2016.
“Within six months, I was inpatient on an aortic balloon pump waiting for a heart,” Cannon said. “I ended up getting my heart 32 days later, So my date is February 27, 2017.”
Just months after Cannon’s transplant, Everhart was diagnosed with HCM too. She tried medication and participated in clinical trials, but her condition kept getting worse.”
“For me, it was, she’s right—I was in denial for a long time,” said Everhart, “and I didn’t want to be sick. I was in my 20s. I was in my early 30’s. I was like, this is not happening. I saw how bad she suffered.”
In May 2022, Everhart got COVID-19, and it sent her into heart failure.
She was added to the transplant list one year later.
“I got the call on January 29 of this year, 2024, and it’s been a journey,” Everhart said. “It’s been fantastic though. Northwestern has been great.”
Cannon said she can’t stress enough how important it is to become an organ donor.
“Had we not had someone that gave that most selfless gift, neither of us would be here,” she said.
CBS News
Congo says mystery disease behind dozens of deaths of women and children finally identified as severe malaria
Johannesburg — For weeks it was dubbed simply “Disease X.” But the mysterious flu-like disease that has killed more than 143 people — mainly women and young children — in the Democratic Republic of Congo has finally been identified.
“The mystery has finally been solved,” Congo’s health ministry declared in a statement on Tuesday. “It’s a case of severe malaria in the form of a respiratory illness.”
The health agency said malnutrition in the hardest-hit region had weakened the local population’s immunity, leaving them more vulnerable to the disease. People who contracted the malaria infection have exhibited symptoms including headache, fever, cough and body ache.
The Congo’s health minister had told journalists the country was on “maximum alert” over the spread of the previously unidentified disease, and health officials told CBS News in early December that the remoteness of the epicenter of the outbreak and lack of a diagnosis made it difficult to launch a concerted response.
At least 592 cases were reported after the alert was first raised by Congo’s health ministry on Oct. 29. The ministry said the disease had a fatality rate of 6.25%. More than half of the deaths recorded were children younger than five who were severely malnourished when they contracted the disease, according to the World Health Organization.
At a press briefing on Dec. 10, WHO Director-General Tedros Adhanom Ghebreyesus said 10 out of 12 samples from patients suffering from the mysterious disease had tested positive for malaria, but he said they were still testing at the time for other diseases.
The Congolese government had sent a rapid intervention team to the Kwango province, 435 miles southeast of capital city Kinshasa, consisting of epidemiologists and other medical experts. Their objective was to identify the disease and mount a suitable response. Government officials had earlier warned locals to avoid touching people infected with the illness or the bodies of those who had died.
Congo has suffered from many disease outbreaks in recent years, including typhoid, malaria and anemia. The country has also grappled with an mpox outbreak, with more than 47,000 suspected cases and over 1,000 suspected deaths from the disease, according to the WHO.
Anti-malaria medicine provided by the WHO was being distributed at local health centers in Congo, and WHO officials said more medical supplies were due to arrive in the country Wednesday.
It’s the rainy season in Congo, which often sees a rise in malaria cases, and will certainly complicate treating those most at risk.
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Russia says suspect detained in killing of Gen. Igor Kirillov, head of Russian chemical weapons unit
Moscow — Russia’s security service said Wednesday that it had detained a suspect in the killing of a senior general in a Moscow bomb blast. The suspect was described as an Uzbek citizen whom the agency said had been recruited by Ukrainian intelligence services.
Ukrainian security sources told CBS News on Monday that the Security Service of Ukraine (SBU) was behind the explosion that killed Lt. General Igor Kirillov. The claim couldn’t be independently verified, but Russian officials quickly vowed to take revenge against Ukraine’s leaders.
Russia’s Federal Security Service didn’t name the suspect, but it said he was born in 1995. According to an FSB statement, the suspect said he was recruited by Ukrainian special services.
“Kirillov was a war criminal and an absolutely legitimate target, since he gave orders to use prohibited chemical weapons against the Ukrainian military,” an informed source in the SBU asserted to CBS News. “Such an inglorious end awaits everyone who kills Ukrainians. Retribution for war crimes is inevitable.”
Kirillov was killed by a bomb hidden in an electric scooter outside his apartment building in Moscow, a day after Ukraine’s security service leveled criminal charges against him. His assistant also died in the attack.
The FSB said the suspect had been promised a reward of $100,000 and permission to move to a European Union country in exchange for killing Kirillov. It said that, acting on instructions from Ukraine, the suspect traveled to Moscow, where he picked up a homemade explosive device. He then placed the device on an electric scooter and parked it at the entrance of the residential building where Kirillov lived.
The suspect then rented a car to monitor the location and set up a camera that livestreamed video from the scene to his handlers in the central Ukrainian city of Dnipro. When Kirillov was seen leaving the building, the suspect detonated the bomb.
According to the FSB’s statement, the suspect faces “a sentence of up to life imprisonment.”
Kirillov, 54, was the chief of the Russian military’s radiological, biological and chemical protection forces. Either Kirillov himself or his military unit were sanctioned by several countries, including the U.S., Britain and Canada, for the alleged use of chemical weapons on the battlefield in Ukraine. On Monday, Ukraine’s SBU had opened a criminal investigation against him, accusing him of directing the use of banned chemical weapons.
Ukraine’s SBU has said it recorded more than 4,800 occasions when Russia used chemical weapons on the battlefield since President Vladimir Putin launched his full-scale invasion in February 2022. In May, the U.S. State Department announced sanctions against Kirillov’s unit, saying the U.S. had recorded the use of chloropicrin, a poison gas first deployed in World War I, against Ukrainian troops.
Russia has denied using any chemical weapons in Ukraine and, in turn, has accused Kyiv of using toxic agents in combat, and Kirillov was allegedly behind the spread of that propaganda.
Kirillov, who had been in his post since April 2017, was accused by the U.S. government of helping to spread disinformation about biological weapons and research.
In March 2023, about a year into Russia’s full-scale invasion, the U.S. State Department said Kirillov had “significantly increased his media engagement” to issue repeated, baseless claims that the U.S. government had been involved in creating both the mpox virus and COVID-19, and that the U.S. “is developing biological weapons able to selectively target ethnic groups.”
“The U.S. Government is concerned that this false narrative may be a prelude for a false-flag operation, where Russia itself uses biological, chemical, or nuclear weapons in Ukraine, and then attempts to blame it on Ukraine and/or the United States,” the State Department said at the time.
The bomb used in Tuesday’s attack was triggered remotely, according to Russian news reports. Images from the scene showed shattered windows and scorched brickwork.
Russia’s top state investigative agency said it’s looking into Kirillov’s death as a case of terrorism, and officials in Moscow vowed to punish Ukraine.