Getting A Loan In Bankruptcy
If you have experienced a financial hardship and are working to resolve your debts in bankruptcy there are few things you should know about future credit. While bankruptcy doesn’t prevent you from getting new credit, you may find that doing so can be more challenging.
Know Your Place
If you are currently in the Dallas bankruptcy process you will not be able to get a new loan. Why? Because doing so will affect your bankruptcy case. Getting a loan is a form of income and income directly affects your bankruptcy case by boosting your reportable income level. If you filed for Chapter 7 bankruptcy, you may find that any change to your income, such as a pay raise or new loan, could disqualify you from eligibility. In a Chapter 13 case, an increase in reportable income often results in an increase in the amount you are required to pay as part of your plan.
If you have completed your bankruptcy case getting a new loan is vital to rebuilding a good credit standing. Some people find that credit after bankruptcy is more difficult than before. This is not because of your bankruptcy, rather the defaulted debts you carried before resolving them in bankruptcy. In any case, finding a good lender is most important. Avoid secured loans and look for a small line of credit that you can manage. There are plenty of lenders looking to give loans to post-bankruptcy consumers, but they may not carry the best interest rate or conditions. Take your time to find a low limit, low interest account that you can use to show a positive payment history.