Getting a loan while in bankruptcy or after….

When a person is in the middle of a bankruptcy, most tend to think that a loan is impossible, but to the contrary, many people are able to get a car loan or other type of loan while in the middle of  or immediately following the bankruptcy. They are able to get a loan, but the rate is normally very high and the terms are usually hard to stomach. Many lenders are more than willing to lend to people who have troubled credit. If you are in that spot, it’s best to shop around. I have had plenty of clients receive offers for new credit cards within 6 months of being out of their bankruptcy.

In the case of home loans, typically a person, who has made it through the bankruptcy and has kept some form of installment loan (such as a car), is able to receive a new home loan within 3 years after filing the bankruptcy. I have had clients who got a new home loan within 6 months of being done with the bankruptcy, but that is an exception not the rule.  Most people are able to borrow for a home again, 24 – 36 months after the bankruptcy.

If you are considering a bankruptcy to deal with exploding debt, but also need to borrow money for a vehicle or a home, then find good counsel and plan your steps wisely, before you proceed.

We can help! Call Todd Courser 810-245-0813.