Is It Possible To Get A Loan After Filing For Bankruptcy?

If you recently filed for bankruptcy, you might have the thought that you will never get a line of credit again. While it is more difficult being approved for financing, that doesn't mean you will go the next decade without a loan. There are many ways you can still get a loan even after filing. The details about getting a loan depend on the type of loan you want, such as a mortgage loan or auto loan. Here is more information about getting different types of loans after filing for bankruptcy.

Personal Loan

The first type of loan you might want to get is a personal loan. This is especially true following bankruptcy, since you were probably already dealing with financial struggles. A personal loan is a loan where you need funds for personal reasons, not related to a home, vehicle or business. Perhaps you just started a new job, but won't see a paycheck for a month, so you just need a little money to get by until then. Regardless of the reason, you should be aware that personal loans in general are hard to get. It can be even harder after filing for bankruptcy.

The best way to get approved for a personal loan after filing for bankruptcy is by showing creditors you are paying your bills. They need to see that you have moved past the bankruptcy and are now a responsible person. Show that you have gotten a job, are paying your bills on time, and are trying to improve your financial situation.

Car Loan

The process for getting a car loan after filing for bankruptcy is a little different. With a car loan, they will still run your credit and check for a history of bankruptcy, but that doesn't necessarily mean you won't be approved. It just means you might be paying a little more for your car. Many auto dealers are willing to work with you, regardless of your financial history. Some dealers will give you the car loan as long as you give them a large down payment, while others will require a down payment in addition to accepting a much higher interest.

There will be some cases where a co-signer is required, but if you can come up with the down payment, you might not need one. As with all car loans, you will also need to provide proof of income and residence, as both are important with this type of loan.


If you want to buy a home after you have filed for bankruptcy, you will need to wait a little longer. Lenders that work with mortgage financing will have strict rules about how long you need to wait after bankruptcy before applying for a mortgage loan, so you should ask them individually. It could be a few years following bankruptcy. Until then, you will need to rent a home.

While you are waiting for time to pass, start working on rebuilding your credit, paying your bills on time, and having stable employment. That proof of income and history of paying your bills on time is going to come in handy. Mortgage lenders won't necessarily deny you just because of your bankruptcy, but they do need to know you will make your mortgage payments on time. For more information, contact a bankruptcy attorney like Wiesner & Frackowiak, LC.