Many look at bankruptcy as the final end solution for their financial woes. When we go way over our heads, the alternative is filing for bankruptcy, and although this is a good way to start clean, there are some problems associated with using that option. If in the past, loans were not a problem as far as obtaining them, then even though one files for bankruptcy, it doesn’t mean that you are considered a poor risk.
On the contrary. Its all those outstanding loans that caused a need for filing, and once they are cleared, then its like a fresh start. The loan officer takes into consideration that your record shows that up until you filed, you were doing okay with the payments on all those outstanding loans.
They know that sometimes we get in over our heads, and that it is virtually impossible to get out of it all without some sort of debt relief. No responsible person who has any pride wants to be looked at as though they are using the system, but we all get thrown a curve ball now and then, and we have options.
Filing for bankruptcy as all knows is a means to rid yourself of all your debts.
So where does that leave you? Looking bad of course for the purpose of obtaining credit. Or does it really?
This is different than a bad credit report due to not paying a bill and it goes into the collection agency.
The advantage end of bankruptcy is that you are “clean” once again, you are debt free.
It doesn’t matter what the reasons you filed. You have a clean slate, and that’s what lenders are concerned about. You do not have any outstanding obligations. So now your a good risk if your income and other factors are right.
So getting a loan is not a problem, unless you do not have the means to satisfy the loan as a result of what is normally considered for obtaining credit. Filing for bankruptcy under those conditions do nothing more than get you out of debt, but doesn’t allow for getting a loan without all the necessary income to meet the requirements of the loan.
Using the option of filing for bankruptcy is becoming increasingly popular these days, and the stigma attached to doing so isn’t nearly as bad as it use to sound, so if that is the only option, then it must be considered in order to keep afloat in a choppy financial sea.