Low Credit Personal Loans After Bankruptcy Can Be Found
Although a lot of the major banks will not issue bad credit personal loans after bankruptcy there are indeed a number of companies that have entered this market and are now actively supplying people with these loans on a regular basis.
You see companies are willing to do this knowing that a person cannot claim bankruptcy for a minimum of seven years following the bankruptcy discharge.
This opens a new market where some lenders will take a chance of people with a bad credit rating knowing they have legal recourse to recoup the amount of the loan.
Most of the large companies simply have no interest in getting involved in this market but these smaller companies are more than happy to profit from this market regardless.
At the time of writing to my knowledge there are no laws in place to stop people from taking on these loans, even though people are required to go to counseling lessons they are not actually forced to follow-up on everything they are told.
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 to 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.
The absence of a law against bad credit personal loans
While many laws exist over who can offer bad credit personal loans after bankruptcy and the interest rates charged for them, there are 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.
Lenders who offer these loans are generally set to make a profit even if the loan goes into default because of the legal recourse they have available to them in this situation which can include wage garnishment. In fact it is normal when applying for these loans do not even need collateral!
You see when someone defaults on one of these loans a court ordered repayment is commonly granted right away for however much the loan comes to, plus all costs involved with the collection of the loan.
As with anything bankruptcy related, if you are bankrupt you must consult a lawyer in regards to this subject and carefully convey all of your options before making any decisions. - 23200
You see companies are willing to do this knowing that a person cannot claim bankruptcy for a minimum of seven years following the bankruptcy discharge.
This opens a new market where some lenders will take a chance of people with a bad credit rating knowing they have legal recourse to recoup the amount of the loan.
Most of the large companies simply have no interest in getting involved in this market but these smaller companies are more than happy to profit from this market regardless.
At the time of writing to my knowledge there are no laws in place to stop people from taking on these loans, even though people are required to go to counseling lessons they are not actually forced to follow-up on everything they are told.
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 to 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.
The absence of a law against bad credit personal loans
While many laws exist over who can offer bad credit personal loans after bankruptcy and the interest rates charged for them, there are 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.
Lenders who offer these loans are generally set to make a profit even if the loan goes into default because of the legal recourse they have available to them in this situation which can include wage garnishment. In fact it is normal when applying for these loans do not even need collateral!
You see when someone defaults on one of these loans a court ordered repayment is commonly granted right away for however much the loan comes to, plus all costs involved with the collection of the loan.
As with anything bankruptcy related, if you are bankrupt you must consult a lawyer in regards to this subject and carefully convey all of your options before making any decisions. - 23200
About the Author:
Bad Credit Personal Loans are just one subject you can learn about at the How To File Bankruptcy Archive.
posted by X - Men @ 3:31 AM
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home