How to Get a Bankruptcy Loan

A bankruptcy loan is typically a loan someone takes out within the first several years after filing for bankruptcy. It is meant to give borrowers a second chance. In fact, bankruptcy loans are ideal for starting over and creating new financial history. It isn't easy, however, to get a bankruptcy loan. Use this article to increase your chances of bankruptcy loan approval.

Difficulty: Moderate

Instructions

Things You'll Need:

• Phone

1. Keep a strict bill paying schedule. Pay all of your bills at least 5 days ahead of schedule. This ensures prompt payment even if there is a mail delay. You must show exemplary money behavior if you expect to receive a bankruptcy loan.

2. Pay your creditors if you filed a chapter 13 bankruptcy. If you filed chapter 7, however, you must only wait 2 years before applying for a bankruptcy loan.

3. Contact a financial bankruptcy specialist. This person can help you find the best bankruptcy loan for your situation. You don't want to tread these waters alone. Especially after recovering financially, you need someone to hold your hand.

4. Request a letter of recommendation from any creditors you have. This can be from your utility company, credit card company, or phone company. This will show the bankruptcy loan lenders that you have changed your ways and can now handle yourself financially.

Tips & Warnings

• If you are already in financial trouble, do not take a bankruptcy loan out to avoid bankruptcy. This does happen, but it usually only gets people further into debt.