There are a number of options, such as bankruptcy loans, provided to bankruptcy applicants to get back to their optimal financial status. Although many believe that they can’t become re-established after bankruptcy, there are a number of loan products, with pre-fixed conditions, offered to the applicants with the sole purpose of stabilizing their finances.
The bankruptcy loans, offered by a number of financial organizations, can be used for purchasing necessary items, such as automobiles and homes.
These loans have certain conditions that must be met in order to receive them. For example, if the debtor filed under Chapter 7 bankruptcy, the debtor can apply for any kind of bankruptcy loan up to two years after their bankruptcy declaration. If bankruptcy is filed under Chapter 13 there is more flexibility regarding the bankruptcy loans. These individuals need to clear all their debts in order to receive these loans. They may also receive larger loans.
In order to get bankruptcy loans, the debtor has to prove his ability of paying back the loans. Post-bankruptcy, the debtor may use their secured credit cards to prove they now have good credit history. They also must pay all their dues properly and can ask the creditors for reference letters. Taking the creditors into confidence is also very important.
Last Updated on : 10th July 2013