Bankruptcy vs debt consolidation, which one is right for your current debt problems?

Filing bankruptcy does not end the possibility of obtaining a personal loan. In fact, a person who files bankruptcy can obtain a bad credit personal loan in as little as 30 days after the discharge of the bankruptcy. And since they cannot file for another bankruptcy for seven years, this provides insurance for companies that are willing to take a chance on someone with bad credit knowing that they have legal recourse to recoup the amount of the loan.

Although most traditional lenders simply will not grant bad credit personal loans after bankruptcy there are numerous lenders that fight over the market. Even with the counseling requirements of bankruptcy on financial management and responsibility, there is no law that requires those declaring bankruptcy to follow any suggestions made during the counseling.

Following the discharge of the bankruptcy, individuals are free to seek bad credit personal loans after bankruptcy whenever they choose.

Bankruptcy records are public record and the availability of these records is suppose to be a sort of punishment for an individual’s past irresponsibility. However, the potential exposure of an embarrassing bankruptcy is no deterrent for some seeking a bad credit personal loan. Even though the bankruptcy laws have changed over the years, there are still some who repeatedly go into debt and file bankruptcy every seven years or as the law allows.

Multiple Bankruptcies Don’t Matter

While many laws exist over who can offer bad credit personal loans after bankruptcy and the interest rates charged for them, there is 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.

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. When a person defaults on bad credit personal loans after bankruptcy a court-ordered repayment is typically granted for the amount of the loan and any costs associated with collecting the loan.

Often the cost of collection approaches the amount of the initial loan along with courts costs, attorney fees and collection agency fees, all charged to the delinquent creditor. This adds even more to the cost of obtaining bad credit personal loans after bankruptcy.

About the Author:

Are your credit card bills stressing you out every month? Struggling to make even the minimum payments? To find out about ways to ease your stress and pay your cards off faster, visit the Inside Debt Consolidation website where you can get free credit card debt consolidation information in our free 5 day e-course. Visit http://www.insidedebtconsolidation.com to get your free subscription.

William Blake | After Bankruptcy |

Tags: After Bankruptcy

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