Filing for bankruptcy can impact your finances in myriad ways, including your ability to get a credit card or a loan. Still, securing a personal loan after bankruptcy might be possible if you’re flexible with your lender and willing to pay higher interest rates and loan fees. You may also be able to secure the financing you need if you can 澳洲幸运5官方开奖结果体彩网:find a co-signer willing to put their🌟 credit on the line to help you.

Read on to learn where to find 澳洲幸运5官方开奖结果体彩网:personal loans after bankruptcy and the steps you can take to apply once♈ you’re ready.

The Difference Be⛦tween Filing Chapter 7 and Chapter 13

The type of bankruptcy you filed can affect your ability to 澳洲幸运5官方开奖结果体彩网:qualify for a personal loan and how long the ba🍬nkruptcy will continue to impact 🍰your credit.

Chapter 7

Chapter 7 bankruptcy involves the 澳洲幸运5官方开奖结果体彩网:liquidation of assets that can be used to settle unpaid debts. However, filers may be able to keep some personal property and real estate depending on their assets and state and federal laws that apply. Also note that some types of debt, including owed 澳洲幸运5官方开奖结果体彩网:child support, most 澳洲幸运5官方开奖结果体彩网:student loans, 澳洲幸运5官方开奖结果体彩网:tax debts, and alimony, typically cannot be discharged during bankruptcy.

澳洲幸运5官方开奖结果体彩网:Chapter 7 bankruptcy stays on your 澳洲幸运5官方开奖结果体彩网:credit report for up to 10 years.

Chapter 13

澳洲幸运5官方开奖结果体彩网:Chapter 13 bankruptcy typically allows the filer to keep their personal property, but they must have regular income and agree to a payment plan that pays off their creditors over time. The court system approves the debtor’s payment plan and budget during the process, and a court trustee helps oversee the repayment of unpaid debts from start to finish.

Chapter 13 bankruptcy stays on credit reports for seven years after the filing date.

Where to Find a Personal Loan After Bankruptcy

Because both of the main types of bankruptcy are listed on credit reports for years after the filing date, going through a bankruptcy can make it difficult to get an auto loan, a mortgage, a credit card, or other types of financing. However, some personal loan companies offer borrowing options that can make post-bankruptcy borrowing a reality.

Consider this 澳洲幸运5官方开奖结果体彩网:list of lenders that offer flexible 澳洲幸运5官方开奖结果体彩网:loan terms as well as a greater chance of getting approved with a low 澳洲幸运5官方开奖结果体彩网:credit score and a bankruptcy on your record:

How to Secure Your First Personal Loan After Bankruptc꧅y﷽

If you need to borrow money after bankruptcy, there are a range of important steps that you’ll want to take. Also, be aware that if you can’t quite get approved for the funding you need, you can spend some time 澳洲幸运5官方开奖结果体彩网:improving your credit and waiting things out before you apply.

Once you’re ready to move 澳洲幸运5官方开奖结果体彩网:forward with a personal loan, you’ll need to make the following moves.

See If You Can Get a Co-signer

Before you apply for a personal loan on your own, see if you have a trusted family member, partner, or friend with good credit who is willing to be the 澳洲幸运5官方开奖结果体彩网:co-signer on the loan. Having another person willing to 澳洲幸运5官方开奖结果体彩网:co-sign the loan can help you get approved with a better 澳洲幸运5官方开奖结果体彩网:interest rate, which can save money over the long term.

However, the co-signer on your loan is legally responsible for repayment if you fail to meet your responsibilities. A late payment on a personal loan with a co-signer can also damage both parties’ credit scores. As a result, it's important to make timely payments.

Pre-qualify Online

Many online lenders let you 澳洲幸运5官方开奖结果体彩网:pre-qualify or “check your rate” online without a hard inquiry on your credit reports. This step can help you figure out the rates and fees you would probably have to pay for a personal loan. It’s also a great way to gauge your approval odds before you apply.

Generally speaking, you can pre-qualify for a personal loan online by supplying your:

• Full name
• Address
• Contact information
• Income
• 澳洲幸运5官方开奖结果体彩网:Social Security number’s (SSN’s) last four digits
  

Create a Budget

Once you have pre-qualified for a personal loan and have an estimate of your monthly payment, gather your bank statements and other bills to 澳洲幸运5官方开奖结果体彩网:create a budget to determine what you can truly afford. Track your monthly expenses and 澳洲幸运5官方开奖结果体彩网:discretionary spending, like food and entertainment.

Ideally, you’ll have enough income to cover all of your monthly bills and enough remaining to cover your new personal loan payment. Any extra cash should be set aside in a 澳洲幸运5官方开奖结果体彩网:savings account.

Gather Documents

Next, gather the documents needed for your personal loan application, including your SSN, annual income, employment, pay stubs, driver’s license, and potentially your 澳洲幸运5官方开奖结果体彩网:tax returns.

The information lenders need from you for the loan process can vary depending on how easily they can verify your identity and income, as well as how long it has been since your bankruptcy filing. Either way, you’ll want to gather all the documents you could potentially need and be willing to send in further documentation and information during the process if the lender requires it.

Apply for a Personal Loan

澳洲幸运5官方开奖结果体彩网:Applying for a personal loan online can be a breeze, particularly if you’ve gathered the information required ahead of time. As y🐼oღu move through the application process, you’ll want to answer all questions thoroughly and honestly.

Make sure to list the true reason for the loan, and be honest and forthcoming about your income and employment situation, 澳洲幸运5官方开奖结果体彩网:or lack thereof. Many lenders are able to reach a decision on personal loans within a few hours, whe𒅌reas others may take a few busines♉s days.

Sign Loan Agreement

Once you’ve been approved for a personal loan that suits your needs and goals, you can sign the loan agreement online and from the comfort of your home. From there, you will typically receive funding via an 澳洲幸运5官方开奖结果体彩网:Au🎃to🍨mated Clearing House (ACH) transfer in your bank account within a few business days. 

After that, you should prepare to make on-time payments on your loan every month with the goal of improving your credit score and financial health over time.

How Do People Use Personal Loans?

cnjem.commissioned a national survey of 962 U.S. adults between Aug. 14, 2023, to Sept. 15, 2023, who had taken out a personal loan to learn how they used their loan proceeds and how they might use future personal loans. Debt consolidation was the 澳洲幸运5官方♓开奖结果体彩网:most com🌳mon reason people borrowed money, followed by home improvement and other large expenditures.🍌

Personal Loan Alternatives After Bankruptcy

As you consider options after bankruptcy, you should know about the 澳洲幸运5官方开奖结果体彩网:alternatives to personal loans that could help you get the financing you need.

• 401(k) loan: A 澳洲幸运5官方开奖结果体彩网:401(k) loan lets you borrow against your retirement plan and then pay yourself back, plus interest. However, not all program administrators allow 401(k) loans, and your plan may require you to immediately repay the loan in full if you leave your job.
• Home equity loan: If you have considerable 澳洲幸运5官方开奖结果体彩网:home equity and a steady income, you may be able to borrow against the value of your home with a 澳洲幸运5官方开奖结果体彩网:home equity loan. Contact several mortgage lenders to shop for the 澳洲幸运5官方开奖结果体彩网:lowest rate since equity loans and lines of credit tend to have lower rates than personal loans. However, your home is used as 澳洲幸运5官方开奖结果体彩网:collateral, and if you default on the payments, the lender can repossess the home through 澳洲幸运5官方开奖结果体彩网:foreclosure.
• Credit card: 澳洲幸运5官方开奖结果体彩网:Secured credit cards and other 澳洲幸运5官方开奖结果体彩网:credit cards for bad credit can give you a line of credit to borrow against when you need to, all while helping you build your credit score along the way. That said, secured credit cards require you to put down a cash deposit as collateral.

The Bottom Line

Getting a personal loan after bankruptcy can be difficult and expensive. However, there are times when you need to borrow money regardless of the long-term costs. Your best bet when seeking a loan after bankruptcy is to make sure you 澳洲幸运5官方开奖结果体彩网:only borrow what you need and pay the money back as quickly as possible.

Also, make sure that you make every payment early or on time and that you use the opportunity to learn 澳洲幸运5官方开奖结果体彩网:positive financial habitsဣ to help y🃏ou avoid financial problems in the future.