How To Apply For Bankruptcy – Your Choice

Mar 18th, 2014 | By | Category: Debt

Bankruptcy is the dark side of a company and arranging for any type of loan at this time is a genuine problem too. Before getting into the details of bankruptcy loan, let’s know how you can start preparing for parties to request a loan.

It is very difficult to deal with the financial situation after bankruptcy. However, a loan can sort your problem to a large extent. It is true that many individuals who’ve suffered heavy losses due to bankruptcy think that it’s the end of everything in this world. Even if you have filed for bankruptcy, it doesn’t say that the financial sufferings will never end. The real purpose of bankruptcy loan is to bring you back onto your feet and get you a way to survive through the mishap.

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Through a bankruptcy loan you can plan again for survival in the marketplace and re-establish yourself. This is an occasion for you through which a piece you will have to get back your home and car. This type of loan is granted to those who’ve already stated bankruptcy, their bankruptcy cases have been previously released by the judge, and their creditors have also been compensated accordingly.

To apply for a loan after bankruptcy, one has to follow certain rules laid by the finance providers. In case you had filed for Chapter 7 bankruptcy, the debtors have to wait for a period of at least for two years after filing for bankruptcy. On the other hand, in case of Chapter 13 bankruptcy law, the creditors need to be fully paid before you can claim a bankruptcy loan; and that if you have cleared this picture of payment to the creditors, you can have the loan.

There are generally two chapters of bankruptcy that you can look into to help you stop the foreclosure from actually happening. The first one is the Chapter 13 Bankruptcy. This type of bankruptcy would enable you to help save and protect all the assets that you presently have while still being able to provide you with a long period of time to pay part of the debt or to pay the entire loaned amount. This is because the Chapter 13 Bankruptcy offers a number of guidelines you and your creditor would need to adhere to, with a view to make the necessary adjustments on the amount of the debt that is still outstanding. In order to become eligible for this kind of bankruptcy, however, you should be able to offer sufficient proof that you’ve enough liquid funds in order for you to apply for a Chapter 13 Bankruptcy. This would then need to be submitted to your local court as substantial evidence that given a long period of time. This could range from three to five years, you would be in a position to pay off the outstanding balance on the amount that you’ve already loaned.

If you prove that right at the time you’re not the borrower who is at high-risk, you can easily ask for a loan without any doubt that your loan amount will be disapproved. Another effectual way of making this is by re-establishing the credit amount by paying it back right on time and also maintaining a credit card successfully. Once this is done, you can request your credit company to provide you with a reference letter stating that you’re responsible when it is a question of paying on time.

Now, it isn’t true that only after bankruptcy you can get this kind of loan. You can also apply for bankruptcy loan as a substitute for reimbursing the creditors at the time of bankruptcy. This has turned out to be a disaster for about all the financial institutions that offer loans to the companies because at the end the companies have to either go for another loan amount or the set of the credit amount sinks. As the future of the companies who’re on the brink of bankruptcy or are already bankrupt is very chancy, the finance providers need full assurance before offering loan to them.

FAQ’s: Financial help after applying for Bankruptcy?
I recently (August 2008) applied for Bankruptcy and I received my discharge (September 2008). However, I had to pay the process of applying for bankruptcy (lawyers, court fees, counseling fees, etc) and now I am in a major issue. I have a completely clean credit report, but I have been left in major debt in other ways. My monthly bills have been hanging (I only pay a bit each month) and I have nothing saved since this happened and I see no relief in sight. Is there any company who would let me get a personal loan with a bankruptcy on my record? Would I be taken advantage of with super high interests rates? And, can I even apply for a loan after bankruptcy? I don't want to get called back into court for doing something wrong.

  • Unless you plan on financing a vehicle, and paying high interest rates, your luck in finding a personal loan so soon after filing bankruptcy are slim to none. A tight monthly budget, a second job would help pay the regular bills…cut out anything you don't have to have, cable with premiere channels, anything extra on them get rid off…get rid of the cellphone if you have one and don't need it, or lower minutes, I just did, saved me a bundle. Lower any utilities bills that you can…You can check this site out and it can help to some degree to gain more information on re-establishing your credit. http://cccs.org/ It's not a walk in the park to re establish your credit..it takes good solid payment history, paying bills on time and just plain hard work to re establish after a bankruptcy filing..It CAN be done..I'm doing it now and have already been approved for a motorcycle loan, and a pre approved credit card offer, that I pay all on time!!

  • If you are talking about utlities, rent etc, then NO don't take out a loan, in some cases call 211 (united way) , community action leagues often they will help pay these bills for you once. to help you get caught up. Yes, if you get a loan you will pay higher interest rates.


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