Exercising Prudence In Securing Loans For Bankruptcy Tainted Individuals
A person already too deep in debt should concentrate on clearing out his debt whether through bankruptcy or any other means of debt relief. Filing for bankruptcy is not the end of a financially distressed individual’s problems. It may keep the creditors at bay but the discharge doesn’t automatically cover all types of loans. Looking at currently owned loans rather than loans to avail of is therefore the more prudent thing to do when there is a possibility of defaulting on any or all owed debt. There may be financial institutions and lenders who would be willing to offer loans for bankruptcy filers but these can’t be expected to come without strings attached. The disadvantages of bankruptcy loans should be reason enough for anyone already having debt problems to steer clear from it. A debt-stricken person can consult a professional financial advisor or debt consultant to help him sort his existing debts and to help him come up with a realistic debt relief plan.
When all else fails and there is no recourse but to file for bankruptcy, you just have to accept your fate and try to get out of the process with as much of your properties as possible. In a bankruptcy case, you will have to list down all the loan accountabilities that you have, all your assets, as well as all your income sources. You would most likely need a bankruptcy lawyer to help you put your case together. There are qualified loans for bankruptcy filing and there are loans and accountabilities that cannot be discharged through this court process. Among those that can be included in the legal case are unsecured personal loans like credit cards and salary loans. Student loans and secured debt are not normally included in these proceedings. Depending on the kind of bankruptcy you are filing, the government may or may not seize your properties for liquidation. A Chapter 7 bankruptcy filing would make use of your liquidated assets to settle your loan obligations while one that was filed under Chapter 13 will take a pre-determined amount out of your regular income, for a period not exceeding five years, as payment for your loan obligations qualified in the bankruptcy proceedings.
Taking out another loan or loans for bankruptcy in order to pay for the upcoming monthly repayments on your existing loans is definitely not the wise thing to do. This kind of practice will only get you deeper into the debt trap with the possibility of keeping you in for the rest of your life. Borrowing money to pay for your loan repayments will eventually add on to the growing debt burden that you already have. Unless you undertake to make some changes in the way you handle your money, you cannot expect to evade the realities brought on by a bankruptcy filing. Before it even gets to the point when you do not have any money left to pay for your monthly repayments, you have to keep a close watch on the money that you owe and the money that you earn.
At the first sign of trouble, you have to find out what adjustments you can do to have more money from your income go towards your loan repayments. Coming up with a budget to reduce your spending and increase your loan repayments is the best option that you have. But, if you are scraping the bottom of the barrel, you might want to take the option of negotiating with your debtors in order to either restructure or consolidate your loans. The goal of these debt relief measures is to lower your monthly repayments so that it will be easier for you to manage your debt obligations. Not all loans, however, can be restructured or consolidated. Your debt consultant should be able to identify which of your loans can be addressed by these relief options.
Businesses and individuals who are able to get their cases dismissed and their creditors paid can start getting a new lease in life. They may consider loans for bankruptcy or post bankruptcy loans that offer friendly rates to help them reestablish their finances. This will make it easier for them to secure homes, automobiles and grab business opportunities that may come their way. Securing bankruptcy loans after eliminating existing debts and proving that you are a financially responsible individual can get you the boost you need to restart your life. On the other hand, getting such loans while you’re still paying off existing debts can only lead to more trouble.
