Home » Finance » Credit

Bankruptcy Loans - Still Possible With No Credit

Oct 25, 2007
Filing bankruptcy doesn't mean that you can never have credit again. As a matter of fact, the point of filing bankruptcy in the first place is to help people who have made disastrous financial decisions in the past, learn from their mistakes and move on.

Bankruptcy loans are a great way to help you re-establish your credit and buy important items such as a home.

There are two types of bankruptcy loans:

-Debt consolidation loan.
-Post-bankruptcy loan.

While the debt consolidation loan may help those who have filed Chapter 13 bankruptcy pay off their creditors and begin to re-establish their credit earlier than making monthly payments according to their bankruptcy schedule, it can be a recipe for disaster for those who have failed to learn how to budget their money properly and stick to a budget by piling on even more debt to their overburdened financial situation.

The more common bankruptcy loan is the post-bankruptcy type of financing. This loan is designed to help those who've gone through the entire bankruptcy procedure, and proven that they have learned how to handle their finances, the opportunity to purchase their own home or automobile.

These loans are usually available to people who have declared bankruptcy only after their creditors have been paid in full.

When Chapter 7 bankruptcy has been filed, the debtor must wait at least two full years after their bankruptcy was filed to apply and qualify for a loan. In the case of a Chapter 13 bankruptcy, all creditors must be paid in full under the bankruptcy agreement in order to apply for a loan.

Just because you've paid back your creditors, and waited the allotted time to file for a loan doesn't guarantee that you'll receive it. Rebuilding your credit takes time, persistence and patience. Although these loans are a bit more forgiving of past mistakes, the will not tolerate a bad credit rating now.

The best way to get a loan after bankruptcy is to prove that you are no longer a high-risk borrower. How? The first step is to reestablish your credit by paying all of your bills on time and properly maintaining at least one credit card, which can be either a major credit card or a store card. Some people have even purchased small items using easier to obtain store credit in order to rebuild their credit history.

Once you have done this on a regular basis, you can request reference letters from your credit company and the companies that you pay for utilities to prove to other lenders that you are financially responsible.

It isn't always easy to rebuild a bad credit history. Nobody owes you the chance to prove yourself worthy of having credit once again. You need to find ways to do that on your own. But, wit careful planning, and a solid sense of budgeting, it is possible to change a bad credit past into a good one.
About the Author
Want To Own a Website? Get Your Own Successful Niche Websites Network at http://eWebCreator.com. Adsense Ready Websites with eWebCreator.com
Rating:
Please Rate:
(Average: Not rated)
Views: 110
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources