Loan After Bankruptcy
by Seth Miller
There are many online and offline lenders who specialize in loans for people with bad credit or with bankruptcy in their credit history. With the multitude of lenders, you will be confused which lender to trust and which can give you the best possible terms. There are many lenders out there who will take you for a ride and offer you high interest rates. And you may jump at it because you have been turned down by many lenders and you are insecure about your financial future.
Bankruptcy can be of three different types, and the loan eligibility after these different types of bankruptcy also differs from lender to lender. The Chapter 7 bankruptcy is the most common one filed in the United States and can be initiated by the debtor or the creditor by filing a petition. The court then appoints a trustee, sells all the non-exempt property of the debtor and divides the proceeds to the creditors.
Bankruptcy filed under Chapter 11, 12 and 13 are more uncommon and complex, and asks the debtor to clear off his credits from his earnings after bankruptcy. Getting loans for each of these different types of bankruptcy filings will depend on the conditions set by the lenders.
If you have filed a Chapter 7 bankruptcy, in which you have turned over all but your most important belongings to a trustee appointed by the court, then you will need to wait for two years before you can apply for a loan, whereas if it is a Chapter 11 bankruptcy that you have filed, and have to just reorganize your business to pay off your creditors, you can apply for a loan as soon as your credits are cleared. But more or less, it is imperative that you build up a good credit history and present yourself as a reliable borrower in your loan application.
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