Business and Trade

Get A Quick Loan After A Bankruptcy Discharge

A state of being bankrupt puts one in situations where one finds himself caught and hard to get out of the situation because of the financial crises going around. It becomes quite hard for someone being bankrupt to meet their daily needs and make the regular payments of the bills and paying off the debt. Well, there are several bankruptcy solutions that one can make use of in order to get rid of the financial crises and meet the monetary issues with ease.

Most people must be wondering and looking for the answer if it is possible to get approved for a loan after bankruptcy or not, well, yes it is possible to get a loan after getting bankrupt but it might be possible that you may not be able to get the loan at the lowest interest rates. But if you happen to work for it your options might improve and get better. So, therefore there is always a ray of hope or light if you are willing to work for it. If you are in such a situation you might consider getting a loan from Canadian Cash Solutions

Well, when one is bankrupt and after getting discharged from the same one can consider and give a shot to a personal loan. Though going through bankruptcy is tough and is disheartening and your credit can be impacted for seven to ten years with the same, thus making it difficult to get certain loans but you still will have the options no matter what. Here is all that you will be required to know about getting or applying for a personal loan after getting bankrupt. Let’s have a look at different kinds of bankruptcy and getting a personal loan. 

Types of bankruptcy and getting a personal loan 

The kind of bankruptcy you end with can make a huge difference in how soon you are able to get a personal loan. Well, there are two kinds of bankruptcy that can affect your ability to get a loan for yourself. Let us have a look at both options. 

  1. Chapter 7- This is also referred to as a fresh start. In this, your debts are wiped out although the court will likely wind up some of your assets in order to meet a portion of your obligations. Chapter 7 bankruptcy can remain on your credit report for almost ten years or so. Thus, this will affect your credit score this way.
  2. Chapter 13- In this kind of bankruptcy instead of wiping out your debt you are instead put on a court-ordered repayment plan. This usually lasts up to three to five years. With this bankruptcy i.e. chapter 13 bankruptcy you will drop off your credit report in almost seven years.

So, therefore bankruptcy can have a huge impact on your credit score. Higher the credit score before bankruptcy, the more significant the drop. The more time passes by since your bankruptcy, the more your score improves. Also, you will be more likely to succeed in your loan application. If you happen to follow good habits after getting bankrupt there are chances that you will surely improve your credit score even with the bankruptcy still listed. You can apply for a personal loan but you have to be prepared to get the application denied or accepted because anything can happen with a situation and condition like that. Well, let us have a look at the steps that you can follow for bankruptcy solutions in order to get a loan. 

Steps to follow in order to get a loan after bankruptcy

  1. Make sure that you check your credit reportMake sure that you collect all the information required about your credit score. Also, keep in mind the fact that the report should be accurate. After chapter 7 bankruptcy your debt should be included and should depict or represent zero balance. Cross-check that your chapter 13 debt accounts are being properly market and reported.
  2. Make sure that you are able to prove your incomeAs you apply for the loan you will be required to prove your income to the lender. Collect the documents that depict or present the proof of your income in order to get the loan from the lender. You can also add other sources of income for instance income of your spouse, side hustle so that the lenders happen to view you as less risky.
  3. Be ready with an explanationYou should make sure that you prepare a letter explaining your reasons behind the bankruptcy and how you are remedying the issues. And if your bankruptcy was for obvious and valid reasons like sudden emergency situations then you might get a bit of a break.

So, these are the steps that you need to follow in order to get a loan after getting bankrupt. Well, these are the ways of getting the loan with that situation but there are also ways by which a person can look forward to improving or rebuilding the credit after such situations. Let us have a look at the same. 

Ways to rebuild your credit after going bankrupt

  1. Look or opt for the option of secured credit cardsThe situation of bankruptcy can harm or adversely affect your credit score. And with a situation like this, you won’t be able to qualify for a normal credit card. But hopefully, you might be able to get a secured credit card. To get the same you will be required to make a deposit equal to your desired credit limit to activate. Just like a traditional credit product the secured card will then pop up on your credit report. Then, all that you will be required to do is make responsible payments and it will therefore help you heal your credit score. Once the term of your credit ends, and any kind of outstanding debt is repaid, the deposit of your security will be returned back to you and your creditworthiness will be ideally improved.
  2. Credit builder loans 

    These loans can act as bankruptcy solutions. It is quite similar to secured credit cards. This will appear on your credit reports and thus will affect it. The more payments you make on-time the quicker your credit score will get improved. Unlike traditional loans make sure that you do not end up paying back the loan quickly. Doing the same will save you from interest and in this case the more responsible payments you make over time, the better for you.These are the ways that you can make use of in order to improve your credit score after being in a situation of being bankrupt. This is all that you need to know about quick loans that you can get or apply for after a bankruptcy discharge.

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