Bankruptcy is not the End of the World

By: Melissa Kellett

Bankruptcy is not an easy process, its consequences are undoubtedly negative if you want to get finance in the near future but it is definitely not the end of the world. Getting finance after bankruptcy though hard, is possible as long as you can show that things have changed after your bankruptcy has been discharged.

Undoubtedly, lenders consider a bankruptcy in your credit report to be a terrible sign that speaks about your credit behavior. For them, it means that you were not able to honor your obligations and you had to resort to filing for bankruptcy in order to get discharged from your debts.

You need to convince them otherwise, however, speaking, pleading or begging won't take you anywhere. You have to show them that your credit behavior has changed with facts. Your credit report has to show that since bankruptcy was discharged, your financial behavior was impeccable. If you can do so, then chances are that you will be able to get finance.

Bankruptcy Loans

There are bankruptcy loans available for those who are in financial difficulties like the explained above. These loans are specially tailored so the lender is confident that the borrower will be able to repay the loan. The loan amounts are not as high as in other situations and though the interest rate will be undoubtedly higher, the repayment program might be longer so as to keep the monthly payments low and affordable.

The main purpose of these loans is to help the borrower reestablish his credit and finances. Thus, don't expect the kind of money you need to start a business or buy a car. Nevertheless, if time has passed and you've been able to raise your credit score by paying all your bills on time, you may be able to request a secured loan like a mortgage loan or car loan and get approved. You'll probably need, however, to provide a co-signer and put money down in order to get approved. Truth is that getting approved has to be more difficult for those who have gone through bankruptcy than for other people because the lenders need to make sure that you are able to make more sacrifices this time in order to fulfill your obligations.

When And How

You'll probably have to wait for at least two years since your bankruptcy has been dismissed in order to successfully apply for a bankruptcy loan and get approved. However, since different lenders have different requirements, there is not a common agreement on this issue among lenders, some require more time, others less. The key to getting approved is your credit score and not the mere passing of time. If you've already been able to re-establish your credit or at least raise it from the depression that bankruptcy implies, it is more likely that lenders will want to consider your application.

In order to find a lender, you just need to search the net for online bankruptcy loan lenders. There are many online companies offering this service and there are even others offering access to many different lenders to choose from which will increase your possibilities. Just make sure to prepare yourself before applying, don't worry about what to say, worry about improving your credit report as it will speak on your behalf.

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