123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

Loan After Bankruptcy A Nightmare Sometimes

Profile Picture
By Author: Best Debt Care
Total Articles: 207
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Apart from the hurdles faced by the individual before and during filing of bankruptcy, it’s after effects are also immense. Bankruptcy seals your credit score for the next ten years. Re-establishing of credit can be done only after that, through your frugal living and wise spending.
There are basically two main chapters under which you can file for bankruptcy, namely chapter 7 and chapter 13. The former is defined as straight bankruptcy where liquidation of assets takes place, whereas the latter makes the filer go through a repayment plan.
Post bankruptcy, life becomes difficult for the filer as his financial life meets with lots of limitations. In this edition, I have tried to bring out the relevant details pertaining to personal loans after bankruptcy.
Obtaining unsecured personal loans after bankruptcy filing can be tough, but I would never say impossible. You might find it hard to search and locate lenders, lending money to an individual who has already filed for personal bankruptcy, but never impossible. Could be, that you would be required to shell out excess money, paying higher interest, due to ...
... the black tag of bankruptcy associated with you. This is because once you have filed for bankruptcy; you are viewed by the lenders as high risk borrowers.
There are basically four chief factors which would determine your loan availability after bankruptcy. They are
Credit Score.
Existing debt
Collateral
Time
Credit Score- Your credit score suffers a lot when you file for bankruptcy and would remain so for a pretty long time. Finding a lender who would not consider your poor score as well as your post bankruptcy status would be hard, but never impossible. Terms and conditions could be hard even if you find one, but one should be prepared for the same, like for e.g. you might need to pay a higher amount of interest for the amount borrowed in comparison to the other non-bankrupt borrowers.
Your existing Debt: It could be that you have accumulated lots of debts even after you have filed for bankruptcy. If so, ensure that you have minimized debts, as this could be a concern for the lenders to lend money. They might fear of losing their money, in cases you file for bankruptcy once again. Rejection of loans on such instances could be higher.
Collateral: If you have any asset to be kept as collateral, then your loan application process becomes easier. This reduces the risk of the lender as he is assured of getting his money back. You can even get the loan on softer terms!
Time: Try to avoid immediate application of loan post-bankruptcy. Exhibit financial discipline and try to improve your credit score. Though it won’t recover very soon, but ensure that your inappropriate spending does not leave you in a bad financial mess.

To know more on availability of loans after bankruptcy, take expert advice from our team at Best Debt Care

Total Views: 187Word Count: 481See All articles From Author

Add Comment

Business Articles

1. Military Spring Snap Hooks | Buckles International
Author: Buckles International

2. Fast Cash Loans Online: An Enticing Combination Of Features
Author: Lucy Lloyd

3. Why Retail Billing Software Is Essential For Modern Retail Businesses
Author: Ginesys

4. Top Quality Kvak Bird Food From Feather Incorporation
Author: Kvak bird food

5. Easy & Quick Short Term Loans Online To Make Your Life Easier
Author: Robert Miller

6. Luxury Wedding Cars: The Perfect Touch For Your Big Day
Author: Andy

7. Unlock Growth Opportunities With The Booming Mena Bpo Market
Author: Andy

8. Top 10 Website Development Company In India
Author: Karthika

9. Efficient Online Petrol Pump Software For Modern Fuel Management
Author: Rupasri

10. Why Is Financial Reporting Crucial For The Success Of Small Businesses?
Author: Bappaditta Jana

11. How Iso 27001 Consultancy In Telangana Helps Mitigate Cybersecurity Risks
Author: Qadit

12. The Importance Of Iso 27001 Consultancy In Telangana
Author: Qadit

13. The Importance Of Strategic Finance In Today's Business!
Author: Bappaditta Jana

14. Make Restaurant Management Easier With Our Restosoft-restaurant Billing Software
Author: restosoft

15. Osumare: The Best Seo Company In Delhi
Author: Anushka

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: