In the world of personal loans after bankruptcy, the unsecured is the wild card. This kind of loan is the most expensive to get because if the loan defaults as a lender has nothing to haul away in a truck for repossession.
This loan holds all kinds of risks for the lender and consequently the interest rates are higher than usual. Yet this is basically the only kind of loan besides a car loan that bankruptcy-wounded borrowers can obtain.
To add insult to injury, a finance company will probably be the only entity willing to make a commitment to personal loans after bankruptcy and their prices to borrow money might be considered outlandish–but they’re legal. This kind of loan truly is the last thing in the world that bankruptcy filers need.
The other type of personal bankruptcy available for those who find themselves surrounded by the posse is a Chapter 13. With this legal proceeding, those throwing up their hands in debt surrender are looking for a way to repay debt on their terms and not the lenders.
A Chapter 13 provides a longer payback schedule and less interest on the loans are the usual foundations for this legal filing. In many ways, Chapter 13 bankruptcy is like most debt counseling programs, which provide the lower interest side, making possible the payback of credit loans within three to five years if the debtor sticks to the program.
But in debt counseling and in Chapter 13, a debtor cannot open another loan account or the program is ended or the filing converts to Chapter 7. Interesting is the fact that often a Chapter 7 filer may be eligible for personal loans after bankruptcy more quickly than the filers of Chapter 13.
Personal loans after bankruptcy, the very thing that that ruined credit for some people filing for bankruptcy is the thing that can actually help them get credit back over time.
While you have to complete credit counseling either on the phone, in-person, or online before and after filing bankruptcy, there will be a lot of questions that come up by bankruptcy filers.
This is why it’s important to work with attorneys who have a background and years of financial and economic experience and knowledge.
Eric Lanigan and Roddy Lanigan, Orlando bankruptcy attorneys, have filed bankruptcies for 35 years and four years respectively. Part of the value in working with the Lanigans is the knowledge and the willingness to work with clients to assure them that all bases are covered. You can be assured by the Lanigans that when the bankruptcy is filed every piece of paperwork is carefully completed personally by Eric or Roddy Lanigan.
Phone calls are returned personally by Roddy or Eric Lanigan. Their background that comes from years of filing bankruptcy is based in their educations in economics and finance. Providing knowledgeable, viable options is critical to their ability to correctly answer questions clients have.
The Lanigans will tell you that yes, credit reports will lead with bankruptcy information, but small, unsecured loans that are faithfully paid back incrementally on time each month begin the restore the health and vitality of a very weak financial condition.
The question about personal loans after bankruptcy really comes down to one thing: does the individual taking the personal unsecured loan know what to do with it? Can he or she be resonsible with it this time around without overspending, overcompensating, taking out money when it’s not necessary?
Can a person who has probably failed for a long time to handle credit properly suddenly change his or her ways and start being responsible?
