What About Loans While In Bankruptcy?
The first thing you should keep in mind is that you should not allow bankruptcy to keep you from getting a needed loan. However, there are a few measures that should be taken first.
1) Discharge your bankruptcy first, then apply for the loan. Do not start the process while you are going through the bankruptcy period. This would warrant a super low score and a reject notice from the prospective lender. You actually need about 6 months to pass after your bankruptcy. Sometimes, you can get your loan application processed earlier, but never more than 2 months after the bankruptcy has been discharged.
2) Have something put in your credit record that show that your financial behavior is better than the pre-bankruptcy period. This is difficult to accomplish given the fact that no lender will consider loan application before at least 2-3 months after discharge. However, do not be disheartened. The approval rates are far higher than you would expect.
