Can You Get Bankruptcy Loans?
There is a lot of stories and myths out there about bankruptcy that people need to do a little research about before they believe them. Bankruptcy is not the end of your financial world and it does not mean that you will never have credit again. But in order to understand what it doesn't mean you have to first understand what bankruptcy does mean. After that then you may be able to understand why bankruptcy loans are both a good thing and a bad thing depending on how you use them and when you get them. Remember that banks are out to help themselves and bankruptcy loans are not a bank telling you your credit is okay, bankruptcy loans are a banks way of getting more money out of you. But first they have to see the money coming in.
Essentially a bankruptcy is a way of saying that you can no longer pay your debt and you need the court's help in satisfying your creditors. Hundreds of thousands of people go bankrupt every year and that puts an incredible strain on banks and the economy. So before a bank would even consider any bankruptcy loans they would need to see some sort of history out of you that shows that since your bankruptcy you have maintained a history of paying your bills and you have even been able to maintain a secured credit card. It still isn't easy after that.
You Quit Once Before
Any bankruptcy loans that any bank gives out won't happen until at least two years after your bankruptcy or your creditors have all been paid. You will need to pay all of your bills on time and take on a secured credit card that you use to start rebuilding your credit. But even if you show great responsibility for years after your bankruptcy the fact is that your bankruptcy stays on your credit report for around 10 years and it shows that you gave up on paying your bills once before. What does the bank have that says you won't do it again? All they have is your word and that is why bankruptcy loans are usually very short term and very high interest. It is almost financially going backwards to take any bankruptcy loans at all.
Bankruptcy is an ugly thing and it follows you for years. Yes you can try rebuilding your credit immediately after a bankruptcy but that mark stays on your credit report for years and even if you show a pattern of responsible spending for a few years you still have that mark. You can try to get bankruptcy loans but they may not be the solution you are looking for.
