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Post-Bankruptcy Loans: What You Need to Know After Filing

Post-Bankruptcy Loans: What You Need to Know After Filing
"""Many of us are aware that bankruptcy is a strategy of last resort for those in financial distress. In addition to the enormous burden that the court process can cause, filing for bankruptcy leaves a permanent mark on your credit. While it is true that having all of your past debts wiped from your credit report and starting over is advantageous, the effects and pangs of bankruptcy will never truly disappear.

In an endeavor to restart your life after bankruptcy, there are options available. Due to your debt-free history, once you locate a job and a reliable source of income, there are lenders who will be more than happy to assist you. If you know where to search, there are numerous opportunities for post-bankruptcy loans in today's financial market.

Your Latest Pitch to Lenders

The notion that a lender would actually want to service a debtor after bankruptcy may initially appear absurd. Nevertheless, there are a few aspects of your current life that, from the lender's perspective, make you a desirable client. Therefore, numerous lenders will specialize in post-bankruptcy lending.

Consider the following aspects of your circumstance following your bankruptcy filing:

1) You have few or no additional debts. With the exception of a few key areas (taxes, student loans, and child/spousal support), the bankruptcy procedure discharges all of your current loans, allowing you to start over with a clean slate. Lenders are anxious to lend to individuals with few or no other financial obligations, as this ensures that they can afford the new loan's monthly payment.

2) You have an employment. As previously stated, the majority of post-bankruptcy loans will not be available until you obtain employment. If you have been consistently employed for at least five years, you are in an excellent position, as this demonstrates your ability to maintain a position and earn a steady income. If you fail to repay your post-bankruptcy loan, the lender knows he has the option to garnish your earnings because you have a job.

You cannot apply for bankruptcy a second time. Once you have completed the bankruptcy procedure, you are prohibited from doing so for an extended period of time. This prevents bankruptcy law from encouraging irresponsible spending behaviors. Lenders offering you a post-bankruptcy loan will be aware of how long it will be before you are eligible to file for bankruptcy again and will therefore only offer you a loan with a term that falls within this timeframe. Since you cannot declare bankruptcy and walk away from the lending table, leaving the lender with nothing, this actually makes you an ideal candidate for a loan.

Loan Eligibility Following Bankruptcy

Although life after bankruptcy does not imply that no loans are available, the number of loans available to you will be limited. A lender will typically offer no more than $5,000 in unsecured loans. However, taking out this loan and repaying it according to the terms is a crucial first move in regaining financial stability after bankruptcy.

You should also investigate secured credit cards as a means of establishing a new credit history. These options are frequently made available by the same lenders who specialize in post-bankruptcy loans, and they are a secure method to start rebuilding credit.

Ensure that your life after declaring bankruptcy includes an honest evaluation of the attitudes and behaviors that lead to these issues. By implementing positive adjustments now, you will have a brighter financial future in the years to come.""

" - https://www.affordablecebu.com/

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"Post-Bankruptcy Loans: What You Need to Know After Filing" was written by Mary under the Finance / Wealth category. It has been read 68 times and generated 0 comments. The article was created on and updated on 01 June 2023.
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