About Loans For People Facing Backruptcy

Introduction

Getting a loan after filing for bankruptcy may seem like a pipe dream for many. However, the situation on the ground is different because there are many lenders out there who provide loans for people facing bankruptcy. Indeed, a bankruptcy charge is bound to damage your credit score but this can be fixed with time. There are various bankruptcy loan choices at your disposal. Normally, debts under bankruptcy can be classified as secured or unsecured. You can apply for a secured loan with secured debts. In such circumstances the borrower pledges assets such as vehicles or property as collateral. If he defaults, the assets are sold to coverage the loan. Unsecured debts include utility bills, credit card payments and phone bills, such debts can be discharged under chapter 7 bankruptcy. However, child support and alimony debts cannot be discharged.

History

Debt consolidation loans for people who have been declared bankrupt can help pay for the non exempt debts. Once you merge your debts into one, payment becomes easier and it also buys you time to recover from bankruptcy. Another advantage is that you can repay the loans from your personal budget and you are able to get nagging creditors off your back. There are many loans providers who may be willing to consolidate all your debts. It is important to schedule visits with loan providers and work out a repayment period which is flexible and affordable for you. You can also negotiate a fair interest rate with a debt consultant. A bad credit or bankruptcy situation should not stand in your way of getting a loan.

Features

There are specific loans for people who have previously filed for bankruptcy. Loan approvals are done within a short spun of time. however there are minimum requirements needed which include:

• Debts are discharged through bankruptcy
• Applicants must have a steady income
• Be citizens of the U.S.
• Have a social security number
• Utility bill payments are up to date.

These five factors will determine if the loan company will consider your application. Once you qualify for a loan, you need to decide whether you want secured or unsecured loans for people with bankruptcy. This depends on your situation and if you have collateral to secure the loan. Generally, unsecured loans are more expensive since the risk is high.

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