Personal Loans After Bankruptcy
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What is Bankruptcy?
Chapter 7 Bankruptcy
Chapter 13 Bankruptcy
What Are the Consequences of Bankruptcy?
Forfeiting your personal assets. The courts may require you to liquidate some of your most valuable goods to pay creditors. In other words, you could end up losing your car, real estate, jewelry, or antiques that have been in your family for centuries. Affecting cosigners. You’re not necessarily the only one who may be financially hurt. If any cosigner is on a loan with you, that person could also be held responsible for a portion of your debt when you file for bankruptcy. Damaging your credit. When a bankruptcy appears on your credit report, lenders typically look at it as a red flag. Because bankruptcy is not the sign of a good borrower in the eyes of lenders and creditors, they may deny your credit applications or charge high-interest rates
Can You Get a Loan After Bankruptcy?
What To Do If You’re Rejected From a Personal Loan
Getting Help from a Government-Approved Credit Counseling Agency. You may not have to work directly with your creditor or negotiate on your own behalf. You can seek out the aid of a credit or debt counseling agency. They’re typically nonprofit, which allows them to provide services to anyone. Some may charge small fees, but those can be waived if you prove your financial hardship. In turn, they can help you outline a plan to repay your debts, work with you to ensure that you follow through, and overall improve your financial standing. The United States Trustee Program has listings of approved agencies organized by state at Justice.gov. Taking Out a Line of Credit or a Loan to Consolidate Your Debts. You may qualify to borrow a credit line or loan to pay off multiple debts. You might typically choose this method to cover the high-interest debt, such as credit card bills, medical bills, or unsecured loan debt. With a debt consolidation loan, you may be able to lower the total amount of interest you owe on your debt and pay it down at a faster rate. However, it may be challenging to get a loan if you have a poor credit score. Negotiating with Your Creditors. Your creditors would likely rather receive their money than watch you default on your debts. So, you might be able to work together to create a repayment plan that ensures a regular but feasible payment system. The kind of negotiation often depends on your lender and what type of debt you owe. Keep in mind that debt settlement will show up on your credit history and can negatively impact your score. Borrowing Funds from Your Friends and Family. If you need a little financial boost, your friends and family might be willing to lend a hand. But, make sure you establish a repayment plan with them to ensure that you repay them promptly. No repaying the funds might cause a rift in your family. Contacting Your Lenders About a New Repayment Plan. If you’ve fallen on hard times, some lenders offer hardship programs to help you navigate repayment through financial difficulties.
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