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How Can a Bankruptcy Lawyer Show You Personal Loan Options?

personal loan

Jan,08,2018

By:Mike Cibik

 

How Can a Bankruptcy Lawyer Show You Personal Loan Options?

Although Bankruptcy is a dark period in anyone that experiences its life, it can pass. It is easier said than done to try and erase bankruptcy from your life. You are marked as an offender who could not pay his dues and had to give up all his assets.

 

Sure, it makes you cringe and look the other way. Unfortunately, you have to build your credit score from scratch. It is certainly not going to be easy nor will you find it simple to obtain a personal loan.

 

Fortunately, the prospect of getting a guaranteed bankruptcy loan when you are in need has become considerably brighter today. In fact, there is not much of a waiting period and, you can have your hands on the money within 24 hours. That is definitely a godsend for most individuals aspiring to borrow a certain amount after being through personal bankruptcy proceedings. It will no doubt help you to build up your credit once again but will also come in handy during any unforeseen emergency.

 

You do have to have a few documents in place as well as the backing of a guarantor or some sort of security once you want to apply for a sizable amount of loan. Having your hands on the required amount will also ease your life going forward. So be sure that you have access to the following before applying for a personal loan.

 

Collateral

 

It will definitely help if you still have a piece of property that you can utilize as security for your loan. Giving everything up to the lender when you declare yourself bankrupt would not be wise. It is advisable to follow the bankruptcy tips when you consult with a lawyer before filing for bankruptcy. You do have to live comfortably afterward too. No issues, if you are not in possession of the house anymore, a car or some any sort of valuables would do as well.

 

It would help to remember that your loan application is likely to be rejected without sufficient collateral. A few lenders might be willing to offer you unsecured loans as well especially when you do not own anything of value. Sadly, the interest rate along with the financial fees tends to go up sharply once your past bankruptcy details come into the picture.

 

Debt Level

 

It is also advisable to apply for a loan only after you have some sort of steady income. The lenders tend to be wary of individuals who have been through bankruptcy proceedings and will not be willing to lend you more money. The suspicions about your inability to pay will always stay on the surface of your lender’s mind making it essential for you to earn regularly.

 

There will be a light at the end of the tunnel post-bankruptcy though. Your ‘debt-to-income ratio’ is sure to look good once all your future debts are wiped off the records after you declare yourself to be bankrupt.

 

Credit

 

Having a positive credit score will work to your advantage once you decide to apply for a loan again. Your eligibility to repay the amount is directly proportional to your credit score and will help the lenders to make their decision in your favor. The criteria differ widely though with each prospective lender having a separate set of rules for approving the loans.

 

However, there is sure to be a minimum credit score that will make you eligible for procuring the required loan amount after being discharged of bankruptcy.

 

Bankruptcy Records & Loans

 

Sure, you will find quite a few lenders willing to provide you with loans the instant you discharge your bankruptcy. However, it pays to remain wary of such lenders as you are likely to find yourself mired in debts soon afterward due to exorbitant rates of interests.

 

Be sure to keep yourself informed about your credit score and remember that filing for Chapter 7 will not require you to pay anything at the time. Sadly, it remains on your report for as long as ten years thus impacting your credit score adversely. A chapter 13, bankruptcy, on the other hand, is thought to be less damaging as you will be allowed to submit a credit application while the reorganization is in force.

 

Want to know your options of getting a Personal Loan after filing for bankruptcy? Cibik & Cataldo can help you with all of your bankruptcy needs! Contact us at 215-735-1060 to talk to our expert attorneys.

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Awards/Associations

We are a debt relief agency that helps people
seek bankruptcy protection under federal law

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