Bankruptcy and Bad Credit – Can You Get A Personal Loan After Filing For Bankruptcy?
Posted on | August 29, 2009 | 3 Comments
Bankruptcy and bad credit are considered one and the same. This often deters many from seeking chapter 7 or chapter 13 bankruptcy. Where a bankruptcy can be held against you, most banks understand the problems and issues people deal with before and after filing. So, what are the big questions anyone should ask when considering bankruptcy as an option to get out of debt? How will this effect my credit? When may I see this taken off my credit? And, can I get a loan? The answers to this can vary all depending on what options you choose in the bankruptcy process.
We at Benjamin Finance do not advise considering bankruptcy unless you truly feel that is your best option. Only you know what situation you are in and what is best for you. Getting information is key in any major decision and as a financial information website, we suggest you research every option available to you before making a decision. We are here to hel
Sometimes when a person is considering ways to get out of their debt, they have a hard time deciding the best way to do it. Debt consolidation is almost always the first choice. With respect to effectiveness, people tend to go both ways with debt consolidation. If done improperly, it can lead to a lower credit score. Of course with lower credit scores you will be hard pressed or unable to secure personal loans or home loans. So, is debt consolidation the best option? Maybe. It all depends on what you want. Consolidating your debt can be effective but takes a fair amount of time to accomplish. You may end up getting into new debt while trying to pay off your old debt. That would be truly tragic.
Let us consider bankruptcy. What does that mean to you and those questions we previously asked? Everything! You need to be well informed. Chapter 7 bankruptcy is the process to choose if you want to get rid of your debt quickly. With the exception of student loans, this can easily zero out your debt so you can start fresh. So what is the catch? Your credit report will reflect that you have had filed for bankruptcy and will remain on your credit report for 10 years. It can also make it very difficult to get a loan or even get a job. Its an option to take if you are in a fairly stable place in your life.
Chapter 13 bankruptcy is usually the better option. You can request to pay off all or part of your debt over the course of three to five years. You will also have the bankruptcy on your credit report for up to 7 years. It is a much better choice than chapter 7 or paying it off yourself. Those options will place your credit score in more jeopardy. The best part about a Chapter 13 bankruptcy is you may be more likely to get a loan.
Banks and financial institutions judge on a case by case basis. Always ask what is available to you. You may find it difficult to secure a personal loan after bankruptcy. It does not mean you shouldn’t try. It can be done.
As president and CEO of Benjamin Finance, I encourage you to visit our website for more financial information, current events and advice.
-Aaron Black
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3 Responses to “Bankruptcy and Bad Credit – Can You Get A Personal Loan After Filing For Bankruptcy?”
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August 29th, 2009 @ 4:15 pm
[...] See original here: Bankruptcy and Bad Credit – Can You Get A Personal Loan After Filing For Bankruptcy? [...]
September 2nd, 2009 @ 8:48 pm
can you please help us i have 5 kids my marriage is failing every door has been slammed in my face help give me and idea to get out of this
September 14th, 2009 @ 6:55 pm
hey!scott cafe dont despair i experienced that one too. but i got a help from onlinebkassist.com and they helped me solve my credit. if you want too just go to their website.