Awful Credit Personal Loans - A Wise Bet?
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 these companies rely on the fact that no individual after filing bankruptcy can do so again until seven years have passed and sometimes even longer.
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.
Even though many of the larger boys in this industry are simply not interested in this market these other generally smaller companies are taking the market very seriously.
The truth is there are no laws that govern people in a bankruptcy that stops them from taking on these loans, although it is true that it probably wouldn't be their first suggestion in their required counseling classes.
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.
Some people are maybe a little bit too desperate and find themselves repeatedly having to file a bankruptcy in a continuous seven-year cycle. I'm afraid the new bankruptcy law has not managed to put an end to this.
No laws to stop you from getting a bad credit loan
At the time of writing there are not any laws in place to stop the individual from applying for these loans. There is however many laws to control those who offer the loans in the first place.
Many folks take out these loans despite the well-known fact that they come with very high rates, even folks who have been through multiple bankruptcies in the past still very often take them out.
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.
Normally a court will make sure that a repayment is granted for whatever the loan amounts to including any additional costs involved with the collection should it default.
Despite the high rates and possible risks if you are still interested in one of these loans it is highly recommended that you consult your lawyer as this is a very serious matter and not one to be taken lightly. - 23221
You see these companies rely on the fact that no individual after filing bankruptcy can do so again until seven years have passed and sometimes even longer.
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.
Even though many of the larger boys in this industry are simply not interested in this market these other generally smaller companies are taking the market very seriously.
The truth is there are no laws that govern people in a bankruptcy that stops them from taking on these loans, although it is true that it probably wouldn't be their first suggestion in their required counseling classes.
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.
Some people are maybe a little bit too desperate and find themselves repeatedly having to file a bankruptcy in a continuous seven-year cycle. I'm afraid the new bankruptcy law has not managed to put an end to this.
No laws to stop you from getting a bad credit loan
At the time of writing there are not any laws in place to stop the individual from applying for these loans. There is however many laws to control those who offer the loans in the first place.
Many folks take out these loans despite the well-known fact that they come with very high rates, even folks who have been through multiple bankruptcies in the past still very often take them out.
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.
Normally a court will make sure that a repayment is granted for whatever the loan amounts to including any additional costs involved with the collection should it default.
Despite the high rates and possible risks if you are still interested in one of these loans it is highly recommended that you consult your lawyer as this is a very serious matter and not one to be taken lightly. - 23221
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Bad Credit Personal Loans are only one of many topics one can read more on at the How To File Bankruptcy Archive.
posted by X - Men @ 1:34 AM
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