Cash 1 Blog
How To Find the Best Bankruptcy Personal Loans
Bankruptcy can be a very difficult time in a person's life. It seems almost as though no credit or credit services are available to a person with a Bankruptcy on their record, and that can be incredibly discouraging.
But at CASH 1, we don't discriminate against anyone who has a bankruptcy on their record, even if it's a recent bankruptcy. For a loan with no credit check, all you need is verifiable income and address. Even people who are dealing with bankruptcy can get a short term loan or title loan from CASH 1.
You may be wondering, 'Where can I find out about loans near me'? or 'Is there an additional fee for a loan if I have a bankruptcy on my record'? These questions can best be answered by one of CASH 1's friendly and same day loan facilitators. Stop by CASH 1 Loans and fill out an application form, or call and speak with one of our staff and we will be happy to answer any questions you might have.
Tough financial times happen to the best of us, and a bankruptcy should not prevent you from getting some much needed cash if you find yourself in a bind.
What is Bankruptcy?
Bankruptcy refers to the legal status of a person or some other entity with a corporate identity that cannot repay debts to creditors. Usually, bankruptcy is imposed by order of a court, and it is often initiated by the debtor. It has a lot of consequences, particularly negative ones that may put the debtor in an unwanted condition.
Being bankrupt is not something anyone ever wants to experience. Nevertheless, regardless of who you are, how smart you may be or how highly you think of yourself, you are never immune to it. A lot of people think there is no hope once bankruptcy hits their paths, and that their financial life is dead and buried. However, this is not necessarily true. In fact, if the right steps are taken at the right time and if the circumstances are utilized prudently, bankruptcy may be a way for you to get a new start in your financial life.
The aftermath of bankruptcy gives you the best possibilities and chances to build your credit fast and reestablish a new, positive financial identity. One of such ways to reinvigorate your financial strength in this situation is through bankruptcy personal loans. The only thing that matters for you is to understand the basics to make the process of obtaining personal loans quickly and easily, and as such, pave the way for a proper economic recovery.
Therefore, we give you some important tips you can follow when looking for a positive financial identity through loans after bankruptcy.
Understand the Specifics of Bankruptcy
Before you secure a bankruptcy personal loan, it is essential to understand what bankruptcy purports and what entails its specifics. Generally, you can file for two forms of bankruptcy. You can file for either Chapter 7 bankruptcy or Chapter 13 bankruptcy.
Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy
By filing for Chapter 7 bankruptcy, you are simply letting every one of your debts to be discharged and extinguished. The thing is, when you file for this form of bankruptcy, what follows is a liquidation of assets and all proceeds, thereof, are distributed to your creditors.
This situation is different from what is obtainable under chapter 13 bankruptcy which allows debt to be reorganized into a convenient repayment scheme which can last for three, four or even five years. However, by filing for Chapter 7 bankruptcy, you will need to complete a Means Test to review your income as well as your assets. A meeting is then set up with your creditors upon the successful completion of the test. More often than not, a car title loan online lender will want you to receive a discharge after you must have met with your creditors before they will consider providing you with an after bankruptcy personal loan. If the meeting with your creditors is yet to be concluded, a car title lender has the discretionary power to deny you a title loan pending the conclusion.
On the other hand, by filing for chapter 13 bankruptcies, you will have to get permission from your trustee before you can apply for a loan with a car title lender. It seems to be that the specifics of Chapter 13 bankruptcy plan are structured in such a way to help you get out of your debt based on the amount of money currently owed. As a result, you cannot dip your head in another debt without informing your trustees. It may be necessary for them to set a particular limit or cap the interest rate on the amount that you are allowed to borrow.
Talk to Your Attorney
Consulting a professional is vital to leading a successful post-bankruptcy life. Before you go for any bankruptcy personal loan, it is imperative you talk to your attorney or any person of such profession. No matter how intelligent or clever you may think you are, the process of getting a loan after bankruptcy is one of the trickiest to navigate, and it often requires expertise. Consequently, the opinion of an expert will do a lot of good in helping you sail through the situation comfortably.
Consider High Interest and Secured Loans
While it is not advisable for you to jump on the first loan offer that comes your way after bankruptcy, you should be open to the eventual possibility of accepting a post-bankruptcy personal loan that comes with high interest sooner or later. The crucial thing is for you to make the possible best of your situation in the unfavorable short-term. The circumstances should be utilized to your advantage. Use the opportunity to increase your chances of getting better loans as quickly as you can.
Never Borrow Big
Anytime you are considering getting a personal loan after bankruptcy, do well to know that you are more than capable of paying it back on time. The urge and temptation to take advantage of a loan opportunity to get a huge sum of money will come; however, you should always bear in mind that the potential of missing a payment and further hurting your credit is not worth the risk at all. Therefore, be wise and choose payable loans. Apply only for small loans and make timely payments. This is one of the things that will minimize stress in the long run and also provide you with a strong foundation for improving your financial standing.
What If Your Bank Refuses to Help?
Do not be disappointed if your bank refuses to approve your application for a bankruptcy personal loan. It happens from time to time, so you should never lose hope if you find yourself in this situation. The good thing which you probably know already is that there are various lenders all around. In fact, you can find a comprehensive list of them easily on the internet. There are several websites where you can get such list of reliable and positively known lenders. These people are always more than willing to provide loans for people with bad credit or poor credit. Another good alternative which you can consider for a loan is a credit union. This might even give you higher chances of success than you could have at your bank.
How to Apply for an Unsecured Bankruptcy Personal Loan
The application process for a post-bankruptcy personal loan always requires a considerable amount of effort. First, you will need to put together your financial record and make it available for assessment. Also, you might be asked to explain how you ended up in bankruptcy, the steps you have taken in response to it and an explanation as to why the situation will never repeat itself. So, you should be prepared for inquiries that may be seemingly unnecessary.
Bankruptcy Personal Loan Requirements:
- Ask for copies of your credit report from all the three credit reporting agencies. The agencies are Equifax, Experian, and Transunion. Examine each of the copies carefully to ascertain whether or not they are up-to-date and accurate. Also, ensure the credit report reflects your present borrowing situation. This is very necessary. If you notice any form of error or the other on your credit report, approach the involved agency and rectify it.
- If you have filed for bankruptcy under Chapter 13, any debt that you are paying off as part of your bankruptcy schedule will be included. On a different note, if you filed for bankruptcy under Chapter 7, each account on your credit report must be included in your bankruptcy, and it must show a zero balance on the report. Examine and ensure this is in place.
- Other than your credit check, your bankruptcy personal loan application will require details regarding your present income. This is required to be able to establish that you can afford to make timely payments on the loan you are getting. Therefore, gather and organize all the essential information about your income and its source in advance.
From the explication we have given above, it is apparent that contrary to what you may think or what you may have been led to believe, a personal loan for bad credit might not be as difficult to find as you expect. This does not, however, preclude the fact that there are as many good deals available to you as there are ridiculous ones. Therefore, the most advisable way to know you are getting a reasonable deal is by making a comparative analysis of all offers from competitive lenders and selecting the one that precisely fits your expectations and needs.
Noel Ballon is a skilled personal finance writer passionate about helping people to succeed financially.
As a guest writer for CASH1, Noel has shared his knowledge on a variety of financial issues, including budgeting, saving, investing, and retirement planning
Noel has a background in economics and finance with over five years of experience writing in the financial sector.
He works to simplify complicated financial ideas so that people from every area of society may understand them.
When Noel isn't writing, he likes keeping current on the latest financial sector changes and looking for fresh approaches to assisting people in choosing wise financial decisions.