Association of National Lenders: Members Updates

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Is It Possible To Get A Personal Loan After Declaring Bankruptcy?

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In these tough financial times, having a sound knowledge of all the financial options and schemes available to us becomes important. There is much ado about credit history and credit reports. So would it be possible to get a personal loan after declaring bankruptcy?

Whether one qualifies for a personal loan after declaring bankruptcy depends on the person’s credit score, the collateral being put against the loan, and the existing debt. If one has a good credit history since filing, it can improve the chances of securing a loan significantly. Provided the lending agency actually does give loans to people who have filed for bankruptcy in the past.

In the case of loans, collateral is very important because it can either increase or reduce the lenders risk considerably. So the collateral and its value plays a major role in deciding whether one gets the personal loan.

Naturally, if one has a large existing debt after filing for bankruptcy and is now applying for a personal loan, the lender is going to doubt the capacity of the borrower. If the lender feels that you have too many other liabilities and payments to make, there is a good chance that the loan will get turned down.

Lenders often have a minimum income requirement. Finding that out and making sure you meet it will increase your chances of securing the loan.