Can I Get a Loan After Bankruptcy

A bankruptcy will undoubtedly have significant impacts on one’s life. The very reason why so many Utah residents file for bankruptcy, like Chapter 7 and Chapter 13 bankruptcy, is to enjoy financial freedom outside of massive debts. Being able to live and enjoy life without the stress of running uphill against debts is incredible and cannot be understated.

That said, there are some negative impacts that bankruptcy can also have on one’s life. The question of whether you can get a loan after bankruptcy touches on a couple of things you can expect in the months and years following your successful bankruptcy petition.

Your Credit Score After Bankruptcy

First, nothing is legally against you from getting a loan after bankruptcy. The problem or trouble many have with securing a loan after such an event has to do with their credit score.

Bankruptcies are put on your credit report and will stay on your credit report for either 7 years if you filed a Chapter 13 bankruptcy or 10 years if you filed a Chapter 7 bankruptcy. This will cause your credit score to drop, and it is apt to deter more established financial institutions from working with you. This is especially true for the first couple of years following a bankruptcy.

However, obtaining a loan after bankruptcy is not impossible. There are lenders available who are renowned for working with individuals with bad and poor credit. That said, before applying for a larger personal loan, we recommend applying for an unsecured credit card that you can comfortably pay off monthly. This will help to raise your credit score to the point that you can obtain a loan at amiable terms with a trusted, non-predatory lender.

Learn More About Life After Bankruptcy

Our Utah bankruptcy lawyers at Alta Legal are proud to help thousands of Utah residents overcome their debt every year by filing for bankruptcy. Contact our team today to learn more through a free consultation.