A common worry among potential bankruptcy filers is that they will be unable to get any form of loan after they declare bankruptcy – for at least seven years! However, whether or not you can get approved for a loan after your bankruptcy filing doesn’t always hinge on how long it has been since the bankruptcy filing went through.
In fact, in most cases, you might be able to qualify for certain loans almost immediately. It all depends on the loan you want to get. Here are some of the common loans that people who have declared bankruptcy are able to get fairly soon after your bankruptcy is approved.
- Most car loan lenders will approve someone who has declared bankruptcy. However, it is worth noting that you will likely incur loads of fees, high interest rates, and very strict payment regulations due to your bankruptcy status.
- Getting a credit card may be fairly simple, as well. In fact, you may be surprised to know that your mailbox will soon fill with high-interest credit card offers. However, if you pay your bills monthly and don’t fall back into your old habits, you’ll be able to negotiate those interest rates down at some point.
- Most lenders will consider a secured loan, assuming you have some collateral to secure it with after your bankruptcy. In fact, a good idea to improve your credit rating is to take out a secured credit card that you can borrow against and pay off regularly.
It’s unlikely you will be able to secure a home mortgage after declaring bankruptcy. In fact, federal laws are in place that require minimum wait periods to pass before you can get a traditional home loan. Some loans may require two years, others might require as much as seven before you’re allowed to get them.
Before filing for bankruptcy protection, it’s important to understand the full ramifications of your decision. Speak with a knowledgeable bankruptcy lawyer in Cherry Hill, NJ who will explain the process and help you decide how to proceed based on your particular situation. Call the Law Office of Joel R. Spivack Esq. for bankruptcy guidance.