How To Get A Loan After Bankruptcy
After bankruptcy most people are relieved, they no longer have to carry the stress of their financial burdens around with them. A few years after bankruptcy you might be thinking, if it is possible for you to get a loan. You probably heard several times before you filed for your bankruptcy, that you would never have a car or a home in your name again. This is inaccurate information; you can get a loan after bankruptcy.
There are firms and people out there that specialize in giving loans to people who have bankruptcy on their record and or bad credit. There are some instances, were if you filed bankruptcy you will have to wait until the case is dismissed or the creditors are paid to get a loan, but that isn’t always true. At all comes down to what type of bankruptcy you filed for.
For instance if you filed for Chapter 7 bankruptcy, you must wait two years before getting a loan. Now lets say you filed for Chapter 13 bankruptcy, you basically have to wait until the creditors have been paid; after your bankruptcy discharge is complete. This is why it is important to have a knowledgeable bankruptcy attorney, tell them what your future plans are, so they can help you file the most suitable bankruptcy for you.
If you are trying to file the bankruptcy on you own you should know the basics of both chapter 7 and chapter 13. Chapter 7 also called “liquidation” bankruptcy cancels your debts. You may have to liquidate some of your property for the benefit of creditors. To apply for a Chapter 7 you should get a list of everyone you owe money to and what property you own. The best route is to talk to a lawyer and show them the list, they can help save some of your property if it is on the exempt list. Any non-exempt property will be turned over to help pay your debts.
A Chapter 13 is known as the reorganization bankruptcy, this is where you will repay some or all of you debts, with little or no interest. With this bankruptcy you come up with a plan, on how you are going pay your creditors back. You have to have a steady income and usually put most your paycheck towards the accumulated credit. You will need to really prove to the court that you can do this. You secured debts cannot be more exceeding $922,975 and your unsecured debts cannot be more than $307,675.
Before you can file fore either bankruptcy you must go to a credit counseling class. After you class you and your attorney will meet with your creditors and discuss how you will pay them back. The creditors have 30 days to disagree with your proposal and 90 days to talk with the court about you and your bills.
The major difference between the two chapters is that with chapter 13 you keep your vehicle, your home and other possessions that you own. You must find out which one you are more likely eligible for though. You may not necessarily get approved for the one you want, another good reason to talk to a local attorney.
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