Bad Credit Personal Loans After Bankruptcy Are Readily Available
Many people are able to receive bad credit personal loans after bankruptcy, often as soon as 30 days following the discharge of the bankruptcy. Many companies have found a good market offering these loans, knowing a person cannot claim bankruptcy for a minimum of seven years following the bankruptcy discharge. This opens a new market for some lenders will to take a chance of people with a bad credit rating knowing they have legal recourse to recoup the amount of the loan.
Although most traditional lenders simply will not grant bad credit personal loans after bankruptcy there are numerous lenders that fight over the market. Even with the counseling requirements of bankruptcy on financial management and responsibility, there is no law that requires those declaring bankruptcy to follow any suggestions made during the counseling. Following the discharge of the bankruptcy, individuals are free to seek bad credit personal loans after bankruptcy whenever they choose.
Although bankruptcy records are open the public, and their availability is often seen as an embarrassing punishment for ignoring past responsibility, the availability of bad credit personal loans after bankruptcy has many taking that route to get out from under a heavy debt load. Even with the new laws there are those who continue to pile on debt and file for bankruptcy every seven years or as soon as the law permits.
No Laws Govern Who Applies For Bad Credit Loans
While many laws exist over who can offer bad credit personal loans after bankruptcy and the interest rates charged for them, there is no laws governing who can apply for them. Even a person who has multiple bankruptcies in their past are free to seek financial help wherever they can find it. Despite the significantly higher cost of bad credit personal loans after bankruptcy people often flock to the lender offering such loans.
Few, if any of the lenders offering bad credit personal loans after bankruptcy require any type of collateral for the money, even knowing there is a good chance the loan will go into default, the recourse available, including wage garnishment, make them a profitable business. When a person defaults on bad credit personal loans after bankruptcy a court-ordered repayment is typically granted for the amount of the loan and any costs associated with collecting the loan.
Often the cost of collection approaches the amount of the initial loan along with courts costs, attorney fees and collection agency fees, all charged to the delinquent creditor. This adds even more to the cost of obtaining bad credit personal loans after bankruptcy.