Taking steps to get one’s financial affairs back on track is not always easy. Often, available debt relief options have consequences that some Michigan residents may feel outweigh the benefits. However, this feeling may stem from not having the right information. For example, some individuals may worry that they will never be able to get a personal loan again after completing bankruptcy, but that does not have to be the outcome.
Many factors can play into whether a person is approved for a personal loan after bankruptcy. Typically, many individuals still obtain approval for a loan, but the lender may enforce higher interest rates or higher fees because the loan is considered riskier. Of course, even that does not have to be the case depending on the person’s credit score, when the application for the loan is made and much more.
Some details to consider when applying for a personal loan after bankruptcy include:
- Whether Chapter 7 or Chapter 13 bankruptcy was used
- Whether enough time has passed for the bankruptcy to have fallen off a credit report, typically 10 years
- Whether the applicant has taken steps to improve credit after bankruptcy, such as by using a secured credit card
- Whether the person has a steady income stream
- Whether the loan is secured or unsecured
Fortunately, life after bankruptcy does not have to look bleak for Michigan residents considering this option. With the right information, they may find that this method better suits their needs than they initially thought. If individuals are interested in determining whether this debt relief route could be right for them, discussing their personal details with experienced attorneys may be useful.