Bankruptcy is both a financially and mentally debilitating issue. It means liquidation of assets to foot some of the debts under Chapter 7. You will have a bad credit report after filing for bankruptcy under both chapters. However, you can get a private bankruptcy loan even before the period stated is over, probably 2 years.
How to Apply for a Private Loan after Bankruptcy
Don’t worry if you have a bad credit report for filing for bankruptcy. You can still get private bankruptcy loans.
Follow these steps:
Examine your Credit Reports
Begin by getting all details of your current credit report from authority credit report providers. From this, you will be in a position to judge where you stand. A clean credit report will work in your favor. If you had a Chapter 7 bankruptcy ensure that the sum total of your debts adds up to zero before applying for a private loan after bankruptcy. If you filed for a Chapter 13 bankruptcy make sure the debt reporting is being done correctly since you’re now repaying the loan.
Collect Proof that you have a Steady Income
Collect any proof that will convince the lenders that you can pay the new loan. Remember, things will be a bit difficult when applying for a private loan after bankruptcy than a regular loan.
Pay stubs for example check stubs, ticket stubs, cash receipts, and any other documentation should prove your current stream of income. Another trick is calculating your side hustles and wife incomes as proof.
Prepare a Top-Notch Explanation
Write down a letter trying to prove your innocence to the lender. The letter should explain why you went bankrupt and what you are doing to patch up the problem. Some convincing reasons may include footing medical bills or other tragic emergencies.
Get a positive credit report, collect convincing proof of current income and prepare a good explanation. You never know. You can successfully apply for a private loan after bankruptcy.