Bankruptcy Loans No Longer Taboo

Bankruptcy Loans - No Longer a Taboo

It used to be that whenever you said the word “bankruptcy” you would have to cover your mouth and whisper as if it were some taboo, four letter word.  Not so any more.  Bankruptcy loans are more common than you can imagine, especially with the fragile state of the economy these days.  In fact, banks are even going under in record setting numbers.  It is late September and already 95 banks have failed so far this year.  If banks continue to fail at this speed then by the end of the year that will be over 125 of them to have gone under since January.  Unfortunately, although it is no longer a forbidden subject to discuss in polite company, the availability of bankruptcy loans may be waning along with the economy.  There are still several options you may wish to consider.

If you can find a lender who offers loans after bankruptcy, it is quite possible you would have stumbled upon a private investor or group of investors known as subprime lenders.  They do offer subprime personal loans but the interest and/or finance charges tend to be high because they are taking a risk lending money to someone with a less than favorable credit report.

If you own your home you might be able to refinance it and pay off some or all of your smaller bills with a debt consolidation loan. Sometimes conventional lenders are willing to finance bad credit loans if there is real or tangible property as collateral for the loan.  Once you have filed for bankruptcy it goes on your record and your credit score reflects this.  Even if you have equity in your home any new loans after filing would be considered “bad credit loans.”  This kind of loan is considered a “secured” loan because of the fact that you are offering your home as collateral in the event you default on the loan.  If you have clear title to your vehicle you could also look into bankruptcy auto loans.  The amount you borrow is roughly based on the value of your vehicle.  If paid in full in a timely manner it also helps to begin mending your credit score.

Often when you declare bankruptcy you seek the help of professionals who offer credit counseling to assist you through this stressful time.  Not only do they assist you through the bankruptcy process but they offer skills and advice on how to avoid future credit problems.  Your counselor might even have lenders available who offer bankruptcy loans at reasonable rates.

Don’t be afraid to ask for help.  A bankruptcy loan no longer carries the stigma it did when the economy was booming.  Your economic problems may or may not be of your own making.  Bankruptcy loans can get you out of your current crisis but it is up to you to stay solvent from here on out.   With a little effort and a lot of resolve you can get your credit report back to where it should be.  Let’s keep it that way!