Can You Get a Loan If You’re Bankrupt?

Have you been declared bankrupt and you’re worried you might not be able to get a loan? Don’t think that all hope is lost because you can still apply for a loan.

Here are ways to apply for a loan while you’re bankrupt.

Proof of Employment

If you’re employed, you need to show the lender your proof of employment. On the other hand, if you plan to apply for a loan from a bank, they might not accommodate your request if you’re self-employed or only employed part-time. That’s why it’s best to check the lenders’ requirements before you submit a loan application.

Proof of Assets

Applying for a loan when you’re bankrupt is possible if you have proof of assets. These could be in the forms of properties that are under your name such as your home, a car, and other valuable items. Your assets are used as a guarantee by the lenders.

Seek a Guarantor

If you’re not employed and you don’t have enough assets to help you apply for a loan, you can apply with a guarantor. A guarantor is someone who has an excellent credit score with a stable income.

Apply for Payday Loans

Payday loans are short-term loans that have little value. Payday loans go between one thousand and ten thousand dollars. Due to the small amount from this type of loan, you get higher chances to get approved despite your bankruptcy.

Rebuilding your finances following a bankruptcy may be challenging. As mentioned, you can still get loans when you’re bankrupt, although it could get difficult as well. Payday loans are traditionally relatively expensive so a lot of experts suggest that they should be avoided where possible.

Get a Bad Credit Personal Loan

There are available bad credit personal loans from certain lenders. They can offer loan amounts of up to $10,000.

Here are some other tips to help you:

● Compare lenders - don’t settle for a single lender. Your choices may be limited but you’ll still have a couple of lenders to choose from. Choose a lender that has repayment terms that you can adhere to.

● Consider local resources - before you take out a loan, you might want to consider other local resources such as government agencies, nonprofits, and local charities that offer free financial services. These places usually help with food, rent, and utilities.

● Ask for payment extensions - take the chance to talk with bill providers if they can extend your payment plan or your due date.

● Get side jobs - there are many job opportunities that you can use out there, especially online.

● Sell items - if you have items that you can sell, go ahead and put them up in the market.

● Evaluate your finances - your assets and income may have been affected by your bankruptcy. Therefore before you apply for a loan, make sure that you can handle the repayments.

● Set a budget - you need to follow a stricter budget especially if you plan to get a loan. Sort out your budget first before you talk to lenders. You need to ensure that you can get your finances rolling while you’re paying your loan.

These are the important things that you have to keep in mind when you plan to apply for a loan with a bankrupt status. These will help you find the best loan that will be easy for you.