Filing a personal bankruptcy claim can be a long term solution to escape the endless cycle of debt accumulation, though filing does come at a price. For starters, your credit rating will be tarnished and you may find it extremely difficult to get any sort of credit in the future. In the eyes of any financial institution or lending agency you are a liability – with a history of bankruptcy they have no guarantee that should they lend to you or that you will pay them back. Because of this, banks will typically only extend financing at steep interest rates.
So what does this mean? This means that there are lenders out there who will approve personal loans after bankruptcy, especially online lenders. You might want to consider paying a visit to your bank to ask about personal loans and what criteria/terms apply if they would be able to help you. Lenders will usually have a set of criteria when considering you for a personal loan after a bankruptcy claim such as your credit history, any existing debt, and any assets that you may have and how long ago was it that you claimed bankruptcy. Bear in mind that some lenders – even the companies who specialize in loans after bankruptcy – will not even consider you for a loan if you have filed for bankruptcy within the previous two years.
When applying for a personal loan after bankruptcy it’s important to understand that the interest rate is likely to be very high. It’s also important to understand that there is very little room for bargaining, as that is the way this type of loan works. Being accepted for a personal loan after bankruptcy will provide you with the chance to rebuild your credit rating and recover your good name. In the future should you need to, you would be able to apply for and possibly succeed in getting a larger loan that is either secured or unsecured.