How to Obtain a Personal Loan After Bankruptcy

Video Transcript

"Obtaining a personal loan after a bankruptcy. Well it depends on the type bankruptcy you've have had. You could have had a Chapter 7 which is a complete wipe out or a Chapter 13. Actually, it's easier to do it after a Chapter 7 which is a complete wipe out. The bankruptcy laws were recently revised and it's made it more difficult in many respects for people to do a bankruptcy, but and it's held more accountability for those that do a bankruptcy. But when you go to do a loan, they're going to look and see; well, okay what are the chances that this person is going to pay us, and so your ability to pay and, of course, if you've done a complete wipe out, then you don't have any debts. Maybe you've reaffirmed your home and you've got the whole mortgage and a car and that's all you've got. So, maybe you're in a better position to pay them back than when you'd had a thousand or two thousand dollars worth of credit cards and so and so forth that were eating your lunch. And so, you go down you talk to them. You explain what when on and typically you can do this on the phone. You don't have to go in person and ask them if they are giving out lines of credit; you've just had a bankruptcy. You'll be obligated to provide the initial court documents of when you filed the bankruptcy, and also the final discharge papers of when the bankruptcy was over with, but we do mortgage loans for people who are two years out of bankruptcy all the time. Obviously, you want to reestablish your credit. There's some steps for doing that. Part of that whole thing is, you know, if you have to you can either put some money in the bank and get what you call a secured loan where you've got ten thousand dollars in the bank or five hundred dollars in the bank and you get a five hundred dollar loan just to prove that you can pay. That's the reason why people loan you money or don't loan you money based on your credit score which is the record of how faithful you've been in paying your bills. And so again if you've had a medical bankruptcy where everything was going along great and then all of sudden you had these big medical bills and you fell off the cliff, we'll look at your credit report and the bank will look at your credit report and they can see if you are a "repeat offender" or if you had a significant life event that caused the bankruptcy and all of this makes a difference to them."