You may think that you might not qualify for a loan if you have recently filed for bankruptcy. However, as long as business conditions permit, the financial sector evolves and meets consumer needs.
The good news is that people who have recently submitted bankruptcies and are trying to reconstruct their credit and financial situation have available loans. Whilst the rehabilitation process is not straightforward or swift, but the first step is to obtain a bankruptcy loan.
The loan company tells the credit agencies when you ensure you pay the monthly payments regularly, which helps your credit score and record. Daily repayments are a symbol of creditworthiness and help generate good credit over time. At the same time, you should remember that you will not be able to collect loans for many years if you fail to make your monthly payment, and you will ruin your credit score too much.
Therefore, pick a bankruptcy loan if you are confident that you can keep up with monthly payments. To take this lightly, the risk is too significant. If required, wait a few more months to stabilize your income and apply for such a loan. This would also improve the likelihood that the loan will be accepted.
After your bankruptcy is withdrawn, you will obtain a bankruptcy loan. You will have to wait a long time to apply for a freshness loan if you have used for Chapter 13. Only after all creditors’ debts are paid may you apply for a loan. On the other hand, if, after 2 years of bankruptcy, you have used for chapter 7, you will apply for a bankruptcy loan. Although these are general conditions to qualify for a loan after bankruptcy, every lender has its own set of rules and standards to be met. For instance, if a lender waited 10 years after the bankruptcy was discharged, one can only accept a borrower, while another can obey the law for two years. Don’t give up if the lender doesn’t endorse your loan. It is in your best interest to look for lenders who deal with bankruptcy loans and ensure that they follow all conditions set down by the lender before applying for the loan.