Declaring bankruptcy can seem like a way out and a curse at the same time. By allowing you to have a fresh start, you feel that life can be good again. You are set out on the path to better financial health. Then something happens, and you need a loan.
Finding a loan after a bankruptcy can be a nightmare. The good news, though, is that it is not an impossibility. Here is some information to help you continue on the path to financial wellness and still get the money for your necessities.
What are My Options?
Dealing with bankruptcy can be tough. Despite the relief you can get from all your debts, you might still be asking yourself one question – ‘What happens when you file for bankruptcy?’ Generally, there are some things that might happen after you’ll be declared bankrupt. Aside from seizing and selling some of your assets, the filing and declaration of bankruptcy might impact your credit rating and become a public record which allows anyone to review your file.
More importantly, bankruptcy might affect your ability to qualify for a loan. When you are looking for a loan after bankruptcy, it can feel like all of the doors are closed. You have options though. If you have the credit you can apply for a bank loan. However, many traditional financial institutions shy away from recent bankruptcies. Another option would be to ask family or friends to loan you the amount you need. This option will be the easiest if you have someone who can assist you. You want to make sure that it is a reasonable amount though, that you can easily pay back. Otherwise, you may jeopardize your good relationship with your family or friends who are willing to lend you some money.
On the other hand, if you have assets like jewelry or other valuables you may find selling them could be the solution you are looking for. One final option would be a title loan for the value of your auto. A car title loan could give you the extra cash you need for those emergencies in life.
Which Loan Should I Choose?
In considering all of your options, you will want to assess your needs, the amount you can afford in payments and how long you will need to pay the loan back. You want to ensure that you will not be putting yourself in a place where you are unable to pay and end up with the same stresses that brought you to file bankruptcy to begin with. A traditional bank loan will give you the money you need but may carry high interest rates, depending on your credit score.
A personal loan, normally will not charge interest but with this type of loan you want to make sure that you are not stepping on any toes. That is if you want to make sure that the schedule for repayment is met to avoid family feuds or riffs between friends. If you have items to sell this may be one of your best options. This will give you the cash you need without giving you a payment schedule or money to return. Utilizing a title loan will allow you to keep your vehicle while you are making payments for the loan. Again, you will need to assess your personal financial situation to decide which option satisfies your particular need.
If you need professional assistance, you can talk to a trustworthy financial advisor to guide you with your financial decision. Given their experience and skills, they know exactly whether a title loan can be the best way to get some money despite being declared bankrupt. Aside from helping you with the decision-making, they can also assist you in determining how you can repay your loan without straining your finances.
Is a Title Loan Right for Me?
Figuring out if a title loan is right for you will take some homework. You will want to look at your current financial budget and the amount you are looking to receive. Consider the value of your vehicle. This value can often be estimated using the Kelly Blue Book Value, or you could always get a free quote online. With a free quote, you can get an estimated value of what your car is worth. From there you will want to consider how much you can reasonably afford. After you have assessed your finances and the probability of being able to pay your loan, then you will have the answer you are looking for.
So how does it all work? When you have decided that a title loan is a good option for your cash needs, you can complete the application online or call to apply. You will need your vehicle’s information, including title, VIN, mileage, year, and make. You will also need your employment information so that you can show how you will be paying the loan back. Once your loan has been evaluated and approved, you will receive your funds. While you are making payments for your loan, you will retain possession of your vehicle.
The title loan company will, however, place a lien or claim on your vehicle. What this means is that while you are paying off your loan, the loan company will be entitled to the lien value of your automobile. This process is much like when you buy a car, and the car company puts a lien until you have paid it off. A title loan is much the same concept. When you have paid off your loan, the company will send you a lien release.
Being declared bankrupt can be an overwhelming experience. Although filing for it provides relief from all your debts, it may also affect your ability to be eligible for a loan. However, being bankrupt doesn’t mean losing your right to avail yourself of financial solutions. Don’t let a bankruptcy close all doors. You still have options, and a title loan may be exactly what you need to stay your course to financial well being.
But if you want to know how it can work, it’s best to keep the information mentioned above in mind.