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Applying for personal loans after bankruptcy

On Behalf of | Oct 3, 2023 | BANKRUPTCY LAW - Personal Bankruptcy

A bankruptcy filing may make it harder for a person in Ohio to get a loan or credit card. However, securing personal loans following bankruptcy is still possible. Here are a couple of tips for qualifying for personal loans after bankruptcy.

Navigating personal loans following bankruptcy

Personal bankruptcies remain on people’s credit reports for multiple years. Many lenders hesitate to lend to people who have filed for bankruptcy because they view them as high risk. However, individuals might still be able to secure personal loans after filing for bankruptcy if they are flexible with their lenders and open to paying higher loan fees and interest rates.

Co-signers may also increase people’s likelihood of receiving personal loan approvals and securing lower interest rates, which will save them money. Finding a family member or friend interested in becoming a co-signer may be challenging, though, as this individual must be willing to risk his or her credit score to help the person applying for a personal loan. Alternative funding options to consider following bankruptcy include a credit card, 401(k) loan or home equity loan.

How a bankruptcy attorney can help

A bankruptcy filing may be the perfect solution to an individual’s mounting personal debt in Ohio. Although finding a loan after filing for bankruptcy may be challenging, going through the bankruptcy process may still be worthwhile because it can provide a much-needed fresh financial start. A bankruptcy attorney in Ohio can help an individual considering bankruptcy understand his or her options for eliminating debt and experiencing greater peace long term.